Utility company E.ON is planning to sell its US businesses to peer group PPL in a deal said to be worth $7.6 billion. E.ON, an integrated gas and electricity company, acquired the US businesses after purchasing UK energy company Powergen back in 2002. Formally known as Market Unit US-Midwest, the group comprises Louisville Gas and Electric Company and Kentucky Utilities Company, primarily operating in the regulated energy market in Kentucky.
E.ON said that such a deal will mean that the company has “already surpassed its target to realise at least €10 billion from the divestment of assets by the end of 2010″.
Chief executive, Wulf Bernotat remarked:
“With this transaction we divest a strong and solid business. However, Eon US no longer provided us with much room for further strategic development. With PPL as new owner our employees in Kentucky gain a new and strong partner for the future. Eon on the other hand wins more clarity in our portfolio and valuable room for organic growth”
The deal, which excludes E.ON’s US renewable division, is currently awaiting approval from the US competition authorities.
Source: Utility Week