National Grid refocuses on core expertise
UK grid operator, National Grid Company (NGC), has acquired its second US power supplier in the space of two months. The news comes at the same time as the company`s planned sale of the majority of its stake in Energis the telecommunications company.
At the beginning of February, NGC announced that it had agreed to buy Eastern Utilities Associates of Boston for $634m, taking its spending on US power acquisitions to nearly $4bn. At the end of last year, the company paid $3.2bn for New England Electric System.
This is one of a number of moves by UK companies into the recently liberalized US market.
Meanwhile, the sale of a third of its 74.3 per cent stake in Energis is expected to raise $1.6bn, reducing NGC`s holding to 50 per cent. NGC admitted that it was cashing-in on investors` hunger for telecomms stocks with the sale.