Bord Gáis owner Centrica likely to bid for rival Viridian

Bord Gáis Energy's owner Centrica is likely to be among the bidders for rival Viridian, when the deadline for first-round offers closes on Friday.

Viridian, owner of electricity and gas suppliers Energia and Power NI, has been on the block since early last month, when its Bahraini owner, Arcapita Bank, sought bids for the business, which is estimated to be worth €1 billion.

Reports on Thursday indicated that British-based utility Centrica is likely to bid for Viridian, possibly as part of a consortium. The company made no comment, but it was named as a possible suitor when Arcapita placed its subsidiary on the market in December.

Reports also suggested that Australian finance group AMP could be in the running for Viridian, although the company did not confirm this.

Bord Gáis Energy competes with Viridian's Energia power generation and electricity and gas supply operations in the Republic. If Centrica's bid were to succeed, it would have to get Competition and Consumer Protection Commission approval.

Electricity plants

A deal would see Bord Gáis Energy taking over Viridian’s two electricity plants in

Huntstown

, Co Dublin, which have a combined capacity of 740 megawatts (mw). This would almost triple the Centrica subsidiary’s existing capacity, as it owns a 400mw plant in

Whitegate

in Cork Harbour.

Bord Gáis has 750,000 customers in the Republic. (Additional reporting: Bloomberg)