NEES shareholders approve merger
The shareholders of the New England Electric System (NEES) have voted to approve the merger agreement between NEES and National Grid plc of the UK. The Committee on Foreign Investment in the United States has also announced that it has finished its review of the merger and that it will not be taking any action.
In excess of 94 per cent of NEES` shareholders voted in favour of the merger at the company`s annual meeting held in early May. Announced in December last year, the merger calls for National Grid to acquire NEES at a value of $3.2bn. The deal has already been approved by National Grid`s shareholders in the UK, and will put around 50 per cent of the group`s turnover in the USA.
NEES hopes that National Grid will be able to bring its expertise as an independent national transmission system operator to New England`s developing competitive electricity market. Approval of the merger is still required by FERC, the Securities and Exchange Commission, state regulators and the Nuclear Regulatory Commission.