Allentown’s PPL to Purchase U.K. Power Grid

by Michelle on March 4, 2011

A large energy company in Allentown, Pennsylvania is in the process of finalizing a deal that will have the company purchasing a U.K. power grid owned by a German company.  The deal between PPL and E. ON AG has been in the works for some time now but it looks like an end is in sight as far as negotiations go.  This will be the second foreign energy company that PPL will own following the finalization of the deal.  PPL also serves somewhere in the range of 1.4 million customers in various locations in Pennsylvania, such as Center Valley, Bethlehem, and Allentown, where the company is based.  Customers of the company, since it is in an unregulated utility area, should compare their PPL rates to those of other companies offering services in the area by contacting an Electric Rates comparison consultant.

  • The PPL/E. ON AG deal is expected to be finalized sometime around the beginning of April of this year.
  • PPL will be paying $5.6 billion in actual cash for the power grid located in the U.K. but will also become responsible for an additional $800 million in debt.
  • E. ON AG services in upwards of 5 million customers in the U.K.
  • The other U.K. based power company owned by PPL serves approximately 2.6 million customers.

Once the deal between PPL and E. ON AG is finalized it will put PPL in control of a large portion of U.K. energy.  In the end PPL will be holding on to $7.8 billion in assets in the United Kingdom.  The company is reportedly planning on raising the amount of their shares but it is unclear as what that will do for the company.  According to reports the shares will go on the market sometime in December.

Transactions take place between businesses all the time and it is no different for the companies that control your electricity.  This is why it is important to call Electric Rates and compare rates because you never know what these transactions will do to your electricity rates.

Call 1-800-971-4020 to speak with someone at Electric Rates about your electric rate.

 

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