National Grid doubles up in US with $8.9 billion deal

Britain’s National Grid (NG) raised the stakes in the UK’s pursuit of US power firms with news that it is to acquire the New York utility Niagara Mohawk for $3.0 billion in cash and stock, and $5.9 billion in debt. The move represents the NG’s third acquisition in the US where it has already spent $3.8 billion on the takeover of the New England Electric System (NEES) and Eastern Utilities Associates. It is the latest in a string of UK acquisitions in the US, including that by PowerGen (LG&E) and ScottishPower (PacifiCorp).