CalEnergy buys MidAmerican
US power generation group CalEnergy has agreed to acquire MidAmerican Energy for $4bn in cash. The deal gives CalEnergy control of electricity markets in the Midwest.
CalEnergy is aiming to become a major player in deregulating US distribution markets, and will apply its experience of deregulating power markets gained though its UK subsidiary, Northern Electric.
CalEnergy will assume over $1bn of MidAmerican debt. MidAmerican serves 1.3m consumers in Iowa and three neighbouring states.