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3 April 2008 - Centrica is to pay $300m cash to buy US electricity supplier Strategic Energy, as part of the group's strategy to expand in North America.
British Gas's owner said it would merge Strategic Energy and Direct Energy, its North American subsidiary, to form "a top-three supplier of energy to the commercial and industrial market in North America".
Centrica generated about a quarter of its sales in North America last year and is eager to build in the region.
Strategic Energy, a subsidiary of Kansas-based Great Plains Energy, supplies power across 11 US states. It sells 21 TWh of power a year, generating revenues of $2bn.
The combined business would supply almost 55 TW hours of electricity and gas a year, said Centrica, and would yield $15m-plus of benefits a year via economies of scale and opportunities for cross-selling.
The acquisition is subject to regulatory approval and is expected to close in June.
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