Fortis has completed its acquisition of Cinergy Marketing & Trading LP and Cinergy Canada Inc, both fully owned subsidiaries of Duke Energy. They are together referred to as CMT.
CMT is a Texas based marketing and trading platform operating in all key North American markets. The new trading entities will be known as Fortis Energy Marketing & Trading GP in the US and FB Energy Canada Corp. in Canada.
The purchase price is approximately €325 million ($410 million) which includes the base purchase price and the value of the current trading portfolio. The total cash proceeds to Duke include also amounts accounting for CMT’s estimated Net Working Capital at time of close.
“We believe that Fortis Energy Marketing & Trading is now unique in its ability to provide a full service marketing and trading offering across North America and a full-range of banking solutions, all backed by Fortis’ strong AA- credit rating,” says Filip Dierckx, the CEO of Fortis Merchant Banking.
“Today’s acquisition of CMT underscores Fortis’ commitment to developing our North American presence and demonstrates our dedication to our customers,” adds Waldo Abbot, the CEO of Fortis Americas. “We look forward to playing an active role in the Houston and Calgary communities as Fortis does in all of the local communities in which we live and work.”
The North American energy marketing and trading businesses will be co-headed by Jim Fallon and David Jones. Fallon was previously President of CMT and Jones was US Head of Energy Trading at Fortis.