Rugeley Power Station has new owners in £6bn takeover

The owner of Rugeley Power Station today accepted a £6billion takeover offer that will see it fall into French ownership.

The board of International Power had rejected a previous offer from French group GDF Suez, which has been trying to secure the 30 per cent of the business it does not already own.

But today it accepted a fresh offer of 418p per share, which raises the bid by seven per cent.

GDF's successful bid values the business at around £22.8 billion. The takeover deal will cost £6.8 billion.

GDF says it wants International Power because it will help build its exposure to fast growing markets in South America, the Middle East, South-East Asia and Australia.

International Power's coal-fired station at Rugeley currently employs around 200 people and is one of the biggest employers in the town

It opened in 1963 after being commissioned by the state-run Central Electricity Generating Board (CEGB). The station was taken over by commercial firm National Power in 1991 after CEGB was privatised. International Power took control in 2000.

The plant produces around 1,000 megawatts of electricity for the National Grid and powers around 500,000 homes across the Midlands.

International Power chairman Sir Neville Simms said: "GDF SUEZ has made an attractive proposal and the independent IPR directors have concluded that it represents a price that fairly reflects the company's position in international power generation markets and its inherent growth potential."