According to an article in today's Rochester Democrat & Chronicle and confirmed by many other business news sources, RG&E is lined up to be purchased by Iberdrola, a Spanish energy conglomerate:
The parent company of Rochester Gas and Electric Corp. has agreed to be acquired by a Spanish company that is a worldwide leader in wind energy.
Under terms of the deal announced Monday, Iberdrola SA, which is based in Bilbao, Spain, will pay $4.5 billion in cash to acquire Energy East Corp., which is headquartered in Portland, Maine, and owns RG&E and NYSEG, another major New York supplier of electricity and gas.
The acquisition, subject to approval by Energy East stockholders and state and federal regulators, is expected to become final in 2008.
The following links help fill out the story.
- PDF version of complete Democrat & Chronicle article.
- PDF followup to D&C article above, published on 6/27.
- News story in the Binghamton Press & Sun-Bulletin.
- Followup story about PSC reaction in the Press & Sun-Bulletin.
- Complete account of acquisition plans posted on Bloomberg.com.
- Revealing report about financing in the International Business Times.
It will be interesting to see how this all plays out with the regulatory agencies and financiers. There's a lot of movement in the energy field, especially in the volatile wind energy industry, much of which seems to have been in quiet preparation for quite a while. The antitrust implications of what appears to be developing are staggering, however, and we may witness the whole house of cards come tumbling down, Enron-style, if we are just patient.