National Grid Co (NGC) raised the stakes in the UK’s pursuit of USA power firms with news that it is to acquire the New York utility Niagara Mohawk for $3.0 billion in cash and stock, and $5.9 billion in debt. The move represents the NGC’s third acquisition in the USA where it has already spent $3.8 billion on the takeover of the New England Electric System (NEES) and Eastern Utilities Associates. It is the latest in a string of UK acquisitions in the US, including that by PowerGen (LG&E) and ScottishPower (PacifiCorp).
Niagara Mohawk is a transmission and distribution business, the second largest combined electricity and gas utility in New York State, it serves more than 1.5 million electricity and over 540 000 gas customers. NGC has set its sights on improving the efficiency of Niagara Mohawk’s core transmission and distribution operations. The acquisition more than doubles the size of NGC.
