Centrica’s bid to merge its North Sea operations with a rival firm fell down just weeks before its fundraising bid, it is understood.
As reported by the Sunday Times, Centrica was in talks with French utility firm Engie to combine the pair’s North Sea oil and gas portfolios
The deal would have allowed the firms to relieve their financial burdens by axing overlapping processes and re-negotiating with suppliers.
It’s believed the deal was voted down by Engie’s mega-shareholder CIC China.
Last week, Centrica confirmed a £700million share placing.
The move, which wiped 10% of its stock price , was critical to paying down the firm’s £4.7billion in debt, according to Centrica’s chief executive Iain Conn.
The 10% stock hit saw the firm’s market value plummet £1billion.