Centrica puts the AA up for sale

Centrica, the UK’s biggest electricity and gas supplier, is seeking a buyer for the AA vehicle breakdown services business, which it bought for £1.1bn in 1999.

The asking price is said to be £1.5bn. Centrica has admitted it is in ‘prelimary discussions’ with potential purchasers, but would not reveal who they were.

Centrica wants to increase its ownership of generating capacity and gas fields.

It last night "declined to comment on speculation" that it was organising a secret auction to sell the AA, which last year increased profits from £73m to £93m. This compares with just £6m before Centrica bought it. Over that period, the number of AA members has risen from 9m to 15m.