National Power buys UK rec

UK generator National Power is to buy Midlands Electricity`s retail supply business for £180m ($297m). The company will sell its 4000 MW Drax plant to address competitive concerns.

National Power will acquire Midlands` 2.2m customers, employees and power contracts. The deal creates an integrated company with access to the deregulating UK retail market.

The Drax sale is in response to the regulator`s concerns over market power, and could decrease the generator`s market share from 21 to 15 per cent.