Powergen has reported that its £5.1 billion takeover by German giant E.on is proceeding smoothly towards completion next year, despite a small and generally anticipated reduction in third quarter pre-tax profits from £398m to £375m.
The fall is put down to lower wholesale electricity prices in the UK market and a slow down in activity in the American mid-west. It is the existence of Powergen’s American holding, LG & E Energy Corporation of Kentucky, that is causing the delay – E.on needs a series of US regulatory clearances before the deal can go ahead.
