Centrica pulls out of merger with Enron spin-off

British energy supplier Centrica has terminated its merger agreement with US company NewPower Holdings because of concern that NewPower may have liabilities related to the collapse of its former parent, American energy giant Enron.

Centrica, the supply arm of British Gas and Scottish Gas, cited Enron’s failure to obtain an order from the bankruptcy court enjoining claims against NewPower for liability it potentially may have as a result of its membership for a short time in the Enron consolidated tax and benefits groups.