Kuwait’s sovereign wealth fund and a Canadian infrastructure investor are discussing a bid for Severn Trent Plc, the U.K.’s second-largest publicly traded water company that’s valued at almost 5 billion pounds ($7.6 billion).
The U.K.’s 376 billion-pound ($582 billion) program to switch from fossil fuel to renewable and nuclear power is headed for crisis because of looming energy shortages and spiraling costs, Liberum Capital Ltd. said.
Adopting a minimum price for carbon dioxide will do little to encourage investment in the U.K. power sector and risks souring relations with continental Europe, according to Citigroup Inc. and Virgin Green Fund analysts.
The political reaction to the crisis at Japan’s Fukushima nuclear plant risks cutting output from European reactors over the next decade, making it harder for the region to meet targets to reduce emissions.
Severn Trent Plc, Pennon Group Plc and United Utilities Plc are offering refuge to investors after the sell-off in global stock markets because the U.K. water providers have stable, inflation-linked earnings, analysts say.
National Grid Plc , the owner of Britain’s natural-gas and power networks, may consider selling its U.S. business to maintain capital spending without having to sell shares again, according to Citigroup Inc.
Iberdrola SA and National Grid Plc awarded Siemens AG and Prysmian SpA a 1 billion-pound ($1.6 billion) contract to build an undersea link to transmit renewable power between England, Wales and Scotland.