Duke Energy Completes Sale of Commercial Marketing and Trading Business to Fortis
CHARLOTTE, N.C. – Duke Energy today announced it has completed the sale of its commercial marketing and trading business to Fortis, the Benelux-based financial services group. On an after-tax basis, Duke Energy anticipates total cash proceeds of approximately US$475 million. The company does not expect to record a material gain on the sale.
Under the agreement, Fortis purchased Cinergy Marketing and Trading, LP, and Cinergy Canada, Inc. at a base purchase price of approximately US$210 million. In addition, Fortis paid approximately US$200 million for the portfolio of contracts, and an amount equal to the estimated net working capital associated with these companies at the time of close.
"We are pleased to see these quality assets find a home with a top flight firm such as Fortis,” said James E. Rogers, president and chief executive officer. “This exit from the commercial marketing and trading business is aligned with our company’s sharpened focus on growing core businesses that can be expected to contribute steady, stable earnings and dividend growth."
Duke Energy is a diversified energy company with a portfolio of natural gas and electric businesses, both regulated and unregulated, and an affiliated real estate company. Duke Energy supplies, delivers and processes energy for customers in the Americas. Headquartered in Charlotte, N.C., Duke Energy is a Fortune 500 company traded on the New York Stock Exchange under the symbol DUK. More information about the company is available on the Internet at: http://www.duke-energy.com.
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