British electricity group PowerGen is to be taken over by German firm E.On in a deal worth nearly £10 billion sterling.
E.On describes the deal as a major step, which will give it a leading position in the British utilities market.
Today's deal, which comes three months after PowerGen first disclosed that it had received a takeover approach from E.On, follows the British group's massive £2.2 billion buy last year of Kentucky-based electricity group LG&E Energy Corp.
In addition to giving Dusseldorf-based E.On a foothold in Britain, the PowerGen deal will give it a step into the US market.
E.On chairman Mr Ulrich Hartmann says: "The acquisition of PowerGen is one major step - but certainly not the last one - in the growth strategy that we are pursuing in the energy sector, our core business area."
He says that following last year's merger of Veba and Viag, which created E.On, the group has positioned itself as one of the top players in Europe and is now getting ready for a "double jump" across the Channel and from there on across the Atlantic Ocean.
PA
