Vattenfall to boost position in Britain

By Michael Kavanagh
Published: October 6 2008 23:12

Vattenfall, the Swedish power company, will strengthen its position in the British market with the purchase of Amec’s UK wind energy development business.
The £126m acquisition of the lossmaking business from the UK engineering services company is part of a wider agreement between the two companies aimed at developing wind power in the UK.
Under the terms of the deal Amec will be asked to provide specialist consultancy, engineering and project management services to Vattenfall’s wind powered electricity generation projects in the UK.
Amec Wind was established eight years ago to develop a portfolio of potential sites for on and off-shore wind farms. The portfolio sold consists of one site under construction and eight sites at varying stages in the planning process. The division generated a loss of £6m last year. Amec is retaining ownership of a proposed wind farm project on Lewis in the Outer Hebrides.
Vattenfall, a large generator of hydro-electricity in Scandinavia, is Europe’s fifth-biggest generator and was involved in abandoned talks over the sale of British Energy, the nuclear generator sold to EDF of France.
Vattenfall already owns and operates the Kentish Flats offshore wind farm and recently announced an offer to acquire UK wind farm developer Eclipse Energy.
Shares in Amec, confirmed as a consortium partner in the nuclear decommissioning at Sellafield, closed down 83p at 510½p.
Amec was advised by Rothschild on the disposal.
Copyright The Financial Times Limited 2008