UK diversified utility Centrica has seen its share price jump following the revelation that Russian gas titan Gazprom is considering a takeover bid as an entry strategy to the UK energy market.
In an interview with Interfax news agency, Gazprom’s deputy general director Alexander Shkuta revealed the company’s interest in Centrica, causing the UK utility’s share price to increase by 9%. The development comes just days after Gazprom was linked with a possible move for Glasgow-based energy company ScottishPower.
We are now analyzing and reviewing this question. No decision has been taken, Mr Shkuta told Interfax.
State-owned Gazprom has coveted the UK energy market for some time because it believes it holds great growth potential for it. The firm hopes that Russian gas could fill the gap left by dwindling North Sea gas supplies. Just last year the company said it wanted to capture 20% of the UK gas supply market.
According to Reuters, Gazprom may part with around GBP12.5 billion to acquire a company that holds 58% of the UK residential gas market.