Gazprom and RWE are extending for three months their exclusive talks about joint gas and coal fired power plants in Germany, the UK and the Benelux countries.

The two companies announced in mid-July that they had started exclusive talks, initially for three months.

“The negotiations on possible co-operation regarding existing and new-build gas and hard coal fired power plants in Germany, the United Kingdom and the Benelux countries will be carried on exclusively until the end of 2011,” said RWE in a statement.

But RWE said it would put less than 10 per cent of its generation capacity in the UK, the Benelux countries and Germany in a joint venture with Gazprom. The German company would risk rating downgrades and higher borrowing costs if it increased its debt.

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