GPU sells plants to Sithe

GPU Inc. last month announced the sale of 23 power plants to Sithe Energies Inc. for $1.67bn. The acquisition by the French-owned group highlights the increasing interest in the deregulating US market of foreign, particularly European, firms.

New York-based Sithe which is majority owned by French conglomerate Vivendi, will own plants with a total capacity of 4117 MW under the deal. The sale will make it one of the largest producers of power in the northeast US.

The transaction is subject to regulatory approval, and is one of several asset sales made in the US in the past month. Montana Power Company has agreed to sell 1556 MW of generating capacity to PP&L Global Inc., while Enron has agreed to pay $1.1bn for three New Jersey power plants owned by Cogen Technologies.