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Banks grab distressed UK assets

Six European banks intend to buy around 10GW of distressed UK power assets usingfinancial instruments. But their main rival, MMC, says hard cash is needed towin the UK market. By James Ockenden

Six European banks – Abbey, Bayerische Landesbank, Bank of Scotland, HVB, Lloyds TSB and The RoyalBank of Scotland – have formed an acquisition vehicle, CGE Power, whichaims to consolidate the UK independent power generation market by acquiring andoperating a portfolio of distressed power assets.

According to a source close to the formation of CGE, the company aims to acquirearound half of the

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