文章基本信息

标题：Duke Energy to buy Westcoast Energy for 0.59 times revenue
期刊名称：Weekly Corporate Growth Report
出版年度：2001
卷号：Oct 15, 2001
出版社：N V S T.com, Inc.

Duke Energy to buy Westcoast Energy for 0.59 times revenue

The Deal: Duke Energy Inc. has agreed to purchase Westcoast Energy Inc. for $3.5 billion. The acquisition is a continuing move by Duke to collect natural gas assets in Canada. According to the terms of the deal, Duke has also agreed to assume $4 billion of Westcoast Energy debt. After news of the transaction was announced, shares of Duke gained 20 cents to close at $24.30.

Discussion: Westcoast Energy provides natural gas and related energy trading and marketing services in western Canada and the United States. The company gathers and processes natural gas and has interests in nearly 7,700 miles of transmission pipelines. Its gas utility serves 1.2 million Canadian customers; the Enlogix unit manages bills and meter reading for utility customers. The company has stakes in several cogeneration and other power plants in Canada, and subsidiary Westcoast Energy International has interests in power plants in China, Indonesia and Mexico.

Duke Energy has regulated utilities that generate capacity of 17,700 MW and provide electricity to 2 million customers in North and South Carolina. Duke is a leading marketer and trader of electricity and gas in the United States; it also sells energy internationally. In the US, it operates a 12,000-mile interstate pipeline system and is a top natural gas liquids producer and natural gas gatherer. It builds merchant power plants throughout the US. Duke's international plants and pipelines are mostly in Australia and Latin America.