Iberdrola SA (IBEC.MC) is reportedly considering a bid for Germany's Innogy SE (IGY.XE), a renewable energy company valued at more than 20 billion euros ($23.8 billion), according to unnamed sources cited by Spanish newspaper Expansion on Thursday.
Expansion said the Spanish electric utility company has its eyes set on expanding in Europe after a fruitless search for investment opportunities in the U.S. and Australia. Experts predict there will be a consolidation in the energy industry, the report says.
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Innogy was created as a renewable energy spinoff by RWE AG (RWE.XE), which still owns more than three-quarters of the company's capital.
Bilbao-based Iberdrola was not immediately available for comment, but told Expansion that it did not comment on rumors and is committed to its strategy of investing EUR25 billion from 2016 to 2020.
Iberdrola shares were up 0.8%, trading at EUR6.91. Innogy's shares were up 1.6%, at EUR37.48.
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(END) Dow Jones Newswires
September 07, 2017 06:07 ET (10:07 GMT)