GERMAN energy giant RWE today reassured Innogy workers in Swindon that their jobs are safe.

The company, which already owns Thames Water, has bought the Swindon-based electricity supplier for £3.1 billion.

Innogy will become integrated into the RWE empire, but the company's headquarters at the Windmill Business Park, where 800 of the UK's 8,000 staff are employed, will remain.

Innogy operates eight power stations and supplies 4.7 million homes with electricity and 1.9 million with gas.

It was created in 2000 when the former National Power, now called Npower, split its domestic and international opera-tions.

It has since bought Yorkshire Power and Northern Electric's domestic supply business.

Innogy's demise as a British-owned enterprise had been widely predicted in the city having revealed a month ago that it was in talks with a third party.

Yesterday's deal means more than half the UK power industry will be owned by foreign companies and German giant Eon is expected to complete its £6.2 billion takeover of Powergen next month.

RWE is paying 275p a share for Innogy and is also taking on the company's net debt of £2.1 billion.

This means the total enterprise value of the deal is £5.2 billion.

Innogy's chief executive Dr Brian Count said the takeover marked the culmination of the management team's efforts over the last three years.

"The new combination will present further opportunities to enhance our leading position in the UK and to share skills with the RWE group," he said.

"I look forward to leading Innogy on the next stage of development with RWE."

The German giant said it plans to combine its existing UK energy and supply operations with Innogy's business.

Dr Count is to carry on as chief executive of Innogy, and RWE said the group's headquarters would remain in Swindon.

RWE chief executive Dr Dietmar Kuhnt said he was extremely pleased to have reached an agreement with Innogy.

"Innogy is an outstanding business with a strong management team and this combination will deliver significant benefits to both RWE shareholders and Innogy customers alike," he said.

The 275p-per-share offer represents a 31 per cent premium to Innogy's closing share price on February 15 the day before it announced it was in bid talks.

Yesterday's deal needs to be approved by shareholders and the regulatory authorities before it can be completed.