Fortis Picks Up US Energy Trading Business In $415 Million Deal

Fortis has set its sights on the increasingly lucrative US energy sector, it announced Wednesday, with the purchase of two major energy trading operations based in North America. The deal is estimated to be worth approximately $415 million. The deal

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Fortis has set its sights on the increasingly lucrative US energy sector, it announced Wednesday, with the purchase of two major energy trading operations based in North America.

The deal is estimated to be worth approximately $415 million.

The deal allows Fortis to take control of two marketing and trading subsidiaries, called Cinergy Marketing and Trading and Cinergy Canada, under the umbrella of Duke Energy.

Under the deal, Fortis will take over gas and electricity trading operations for Duke, which extend across North America.

The bank will pay around $210 million for the businesses in addition to a similar amount to take control of the existing portfolio of Duke’s operating contracts.

Duke expects to pick up the first half of the payment when the deal is finalized at the end of 2006.

Fortis will then merge the businesses into its current merchant banking operations.

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