ScottishPower sells PacifiCorp for $9.4 billion

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MidAmerican Energy Holdings has reached an agreement to acquire ScottishPower subsidiary, PacifiCorp for $9.4 billion.

MidAmerican Energy Holdings has reached an agreement with ScottishPower to acquire its subsidiary, PacifiCorp, and create an energy holding company serving approximately three million electricity and gas customers in 10 US states and 6.6 million customers worldwide. The transaction has a value of approximately $9.4 billion.


The transaction, which has been approved unanimously by both companies’ boards of directors, will result in a company with assets totaling more than $32 billion internationally, of which $25.3 billion are in the United States.


Following the acquisition, MidAmerican will have approximately $10 billion in annual revenues internationally, of which $8.5 billion will be from the United States. It will own, operate and have under construction or in advanced development more than 16,000 megawatts of electric generation in the United States, relying on a fuel mix of coal, geothermal, hydroelectric, natural gas, nuclear, biomass and wind power.


PacifiCorp will operate under its current name and will continue to be headquartered in Portland. The company will continue operating as Pacific Power in Oregon, Wyoming, Washington and northern California, and as Utah Power in Utah and Idaho.


MidAmerican will purchase all of the outstanding shares of PacifiCorp common stock for approximately $5.1 billion in cash plus approximately $4.3 billion in net debt and preferred stock, which will remain at PacifiCorp. The acquisition is subject to customary conditions, including the approval of the transaction by the shareholders of ScottishPower and the receipt of required state and federal approvals. The transaction is expected to be completed in 2006.