E.ON at Final Stage of Talks to Sell-off Distribution Network for £3.5bn

E. ON is on the final stage of the talks with a consortium of the Abu Dhabi Investment Authority, Canada Pension Fund and Macquarie for the sale of its distribution network for £3.5bn.

The consortia will cater to customers and areas, which was earlier served by the Midlands and East Midlands companies before the privatization of the electricity. The business was sold out to the richest man in Hong Kong, Li Ka Shing for more than £5.8bn by EDF, the group that is under France's control.

The speed at which advancement is moving in the electricity sector has raised concerns among the Ministers, who are dependent on EDF and E. ON for leading the front in nuclear energy in Britain. The Companies hold lack of incentives responsible for making huge investments in an advanced field. But, the Government is not ready to provide subsidies for setting up nuclear power, but it could help indirectly by providing carbon credits, which is not sufficient for the purpose.

E. ON is trying hard to replenish its accounts by employing cost cutting techniques and selling off assets to relieve off the debt. More sell-offs will be announced by the E. ON's Chief Executive, Johannes Teyssen on Wednesday, when he will reveal specifications of a strategic plan and debt reduction programme.