WESTBOROUGH, Mass. and BROOKLYN, N.Y. – National Grid (LSE: NG; NYSE: NGG) is poised to complete its acquisition of Brooklyn-based KeySpan (NYSE: KSE) by the end of the day, the companies said in a joint announcement.
“We’ve been working towards this goal for a well over a year and I am absolutely delighted that we have achieved the final milestone,” National Grid CEO Steve Holliday said in a statement this morning.
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The transaction – first announced on Feb. 27, 2006 – received its final regulatory approval this week from the N.Y. State Public Service Commission, which imposed certain additional conditions. (READ MORE)
The completion of the KeySpan acquisition will make National Grid the nation’s second-largest utility. But some things won’t change, said KeySpan Chairman and CEO Bob Catell, who will become chairman of National Grid USA.
“I’m proud of our record on community commitment,” Catell said in a statement. “We will soon become a larger company, but I’m determined to make sure that we use our size and scale to continue to enhance customer service and continue to play an active role in the local areas that we serve.”
The combined company will serve about 3.4 million natural gas customers and 3.3 million electrical customers in Rhode Island, Massachusetts, New Hampshire and New York. It also will provide power to 1 million electrical customers on Long Island and supply about a quarter of the electricity used by New York City.
“We are totally committed to making sure our customers and shareholders receive the benefits coming from this merger,” said National Grid’s Holliday. “The substantial opportunities for cost savings are clear, and with our investment capability we can really unlock KeySpan’s growth potential. … Now, the real work starts.”
For more information about National Grid (LSE: NG; NYSE: NGG) and its pending acquisition of KeySpan (NYSE: KSE), visit www.nationalgridus.com.
