With the announcement of Gas Natural’s bid for Spanish rival Endesa and the prospect of Eon bidding for Scottish Power in the UK, utilities companies across Europe are bracing themselves for a new wave of consolidation.

A clutch of major power players are likely to emerge as continental markets are liberalised and state-owned providers such as Gaz de France are privatised. Analysts suggest that in five years’ time the European utilities sector will be dominated by a handful of large companies such as Eon and RWE from Germany, Enel of Italy, GdF and EDF of France, and possibly a combined Gas Natural and Endesa in Spain.