Aggreko warns Scottish independence could split its UK business

LONDON, March 6 (Reuters) - Aggreko (LSE: AGK.L - news) , the world's biggest temporary power provider, said on Thursday that Scottish independence would mean it would have to split its UK business in half, leading to significant costs in administration and tax.

The company, which has its headquarters in Glasgow, joins a number of firms like part-nationalised Royal Bank of Scotland (LSE: RBS.L - news) and Edinburgh-based insurer Standard Life (LSE: SL.L - news) , in warning of the risks of secession.

"Following independence, our UK business operations would have to be split into two separate trading entities," it said in its full year results statement.

At an operational level, this would mean significant additional administration costs and complexity in its UK operations as well as having to contend with different approaches to taxes and regulation.

Aggreko, whose equipment powers major events and covers electricity shortfalls, said the UK accounted for less than 10 percent of its revenues.

"At the very least, we will face some years of uncertainty and hiatus. We will, of course, find ways to manage around this challenge if it arises," it added.

The group also said it would face two major macro-economic challenges if Scotland leaves the UK.

"The first is currency, where it seems that the two options for an independent Scotland are either a currency union with the rest of the UK, or a separate Scottish currency. Neither of these options are without risk for our business," it said.

"There is (also) a risk that an independent Scotland might not be able to continue in membership of the EU, and that could impact the terms under which we export equipment around the world."