Utility giants RWE and Engie are weighing potential tie-up options, according to newswire Reuters.
German utility RWE owns Npower in the UK and has a sizeable renewable energy business via its Innogy operation. Engie, formerly GDF Suez, is also one of the world’s largest power companies, and is part-owned by the French state.
Reuters reports that an Innogy swap could be central to any deal, with Engie keen to expand both its international footprint and renewables business.
However, the story states that no mandate has been given to banks to progress any potential deal and talks at the highest level have not taken place.
Engie, which has long supplied business energy customers in the UK, also recently entered the domestic energy supply business, bidding to attract customers with tariffs linked to wholesale price fluctuations.
See the Reuters article here.