EU clears Centrica's £1.3 billion Venture bid

Centrica Plc, the owner of British Gas, said that its hostile bid for North Sea oil and gas company Venture Production Plc was approved by the European Union.

On Friday, Centrica confirmed that its offer had become mandatory, allowing its advisers to buy shares at 845 pence, its offer price, which values Venture at £1.3 billion.

By the end of trading yesterday, it had acquired a further 2,606,049 shares, or 1.7 per cent of Venture, meaning it now owns or controls 41.9 per cent of the Aberdeen-based company. It is seeking 50 per cent.

Centrica, which also operates under the Scottish Gas brand, has extended the time shareholders have to accept the offer by more than a fortnight to 14 September.

The European Commission was reviewing whether the takeover would damage competition in the North Sea oil and gas exploration sector and ruled that the market share of the combined group would not be so large as to create issues.

"As the combined market share of the parties would remain moderate in the markets for the exploration and production of natural gas and crude oil, the transaction would not give rise to any horizontal competition concerns," it said.