Duke Energy buys BHP Power
Duke Energy Corp. of the USA has agreed to buy BHP Power of Australia for $315m. The deal, Duke`s second move into Australia in recent months, is expected to be closed early this year.
The deal will establish Duke as a significant industrial energy operator in the emerging competitive Australian electricity market. BHP Power owns 400 MW of power and transmission assets in Australia and New Zealand. It also has an 11.8 per cent stake in a 965 km gas transmission pipeline in Western Australia.
BHP Power is a subsidiary of Broken Hill Proprietary Co. of Melbourne. Duke entered the Australian energy market last year with the purchase of the 627 km Queensland Gas Pipeline and a trading and marketing operation for $120m. It was also selected by the Tasmanian government to study prospects for bringing natural gas to the state.