LONDON, Sept. 27, 2000, (Knight Ridder/Tribune) — Thames Water plans to use the deep pockets of its new owner, German industrial giant RWE, for an assault on the deregulating waste and water markets of Europe.
RWE was today confirmed as the UKpound 4.3 billion bidder for Thames and is offering 1215 pence a share. Its brokers, Merrill Lynch, swooped on 20 percent of Thames shares today.
RWE already owns a stake in Berlin Water Works and plans to use Thames to spearhead bids in central and southern Europe as well as in Germany.
Thames, which will be in competition with French giants Vivendi Environnement and Suez Lyonnaise des Eaux, has so far concentrated its efforts on the Far East, Middle East and the Americas.
The deal will boost Thames's customer base to 34 million, making it the world's third biggest water company behind the French duo.
Thames chief executive Bill Alexander said the takeover would give the company "a fantastic chance to really attack opportunities we've got in the international water market".
There are likely to be few job losses as a result of the takeover. Thames will remain London based and will be known as "Thames Water, a division of RWE".
The deal will be funded through e4 billion (UKpound 2.4 billion) of existing RWE cash and an e3 billion issue of corporate bonds. The deal is expected to be completed within 45 days.
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COPYRIGHT © 2000, Evening Standard, London. Distributed by Knight Ridder/Tribune Business News.
