Media reports in the UK suggest that Perth, Scotland-based electricity and gas supplier Scottish and Southern Energy (SSE) may be eyeing the purchase of a water company.
The Mail on Sunday newspaper reports that SSE has appointed investment bank Credit Suisse to investigate the possibility of an expansion into the water sector, and market speculation is likely to surround a possible move for Thames Water. Thames is currently being put up for sale by its owner, the German utility heavyweight RWE.
The newspaper reports that Southern Water – owned by banking group RBS – could also be a target. However news of SSE’s move is sure to surprise investors, given that in recent years energy suppliers have been recoiling from the ‘multi-utility’ approach adopted in the 1990s by the likes of ScottishPower and Centrica, which diversified into areas such as telecoms and financial services.