National Grid Buys KeySpan
Date: Monday, February 27 @ 21:33:02 PST
Topic: Business News; Market Research
National Grid moves further into US with £6.8bn KeySpan deal
National Grid yesterday agreed to buy US utility, KeySpan, in a £6.8bn deal that will make the UK company the third largest energy delivery business in the United States.
National Grid is paying £4.2bn for KeySpan, which has 3.7 million customers in New York, Massachusetts and New Hampshire, and taking on £2.6bn in debt. The deal will mean half the operating profits of the combined group will be made in the US, though National Grid said yesterday that a planned £8bn investment programme over the coming years would tip the balance back to the UK.
Alongside its gas and electricity distribution business, KeySpan has power plants in New York and investments in gas pipelines and storage assets. National Grid said the deal would produce savings of $200m (£115m) a year and would bring significant growth with the number of new gas installations growing at 50,000 a year.
The Guardian
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