Gazprom Considers £11 Billion Bid for British Gas

State-owned oil and gas explorer Gazprom, Russia's largest energy company, is reportedly considering a bid worth more than £11 billion for Centrica, the British Gas owner. This move has sent shockwaves through London's financial markets, with Centrica's shares surging by £1 billion to £10.8 billion. Gazprom's deputy general director, Alexandra Shukta, has stated that the company is analysing the possibility of a bid, but no decision has been made.

Key Takeaways:

• Gazprom, Russia's largest energy company, is considering a bid worth more than £11 billion for Centrica, the British Gas owner.
• Centrica's shares have surged by £1 billion to £10.8 billion following the news.
• Gazprom will have to pay up to 360p a share to acquire Centrica, according to analysts.
• Centrica is the largest utility in Britain, with 17 million customers, and controls 58% of the country's residential gas market and 23% of the power market.
• Gazprom recently admitted it was targeting British firms for takeover, but did not specifically identify Centrica.
• British energy firms have come under fire recently from potential foreign buyers, including an abortive takeover bid from German giant E.On.

Statistics:

• Centrica's market value has risen by £1 billion to £10.8 billion.
• Gazprom would have to pay up to 360p a share to acquire Centrica.
• Centrica controls 58% of the UK's residential gas market and 23% of the power market.
• Gazprom plans to target 20% of the UK market by 2015.
• Centrica has 17 million customers.

Sources:

• "State-owned oil and gas explorer Gazprom takes London by storm over potential £11bn bid".
• Interfax news agency.
• Charles Stanley broking firm.
• The Guardian.