KeySpan Corp. announced Monday it will be bought out by London-based National Grid in an all cash deal valued at approximately $7.3 billion. The transaction will double National Grid's customer base to about 8 million in the northeast United States and help to create the third-largest energy utility company in the country, KeySpan and National Grid officials said.
KeySpan covers a number of communities in New York, including many neighborhoods in Queens, as well as portions of Massachusetts and New Hampshire. The buyout will cover many of the same communities, as well as sections of Rhode Island.
"It's a great deal for our shareholders, employees and customers," KeySpan Chairman Robert Catell, who will become executive chairman of National Grid USA. "This is an exciting day for us- we are coming together with a really great company."
National Grid will acquire KeySpan for $42 per share in cash for an approximate value of $7.3 billion and an enterprise value of $11.8 billion, KeySpan and National Grid officials said.
Reach reporter Nathan Duke by email at news@times
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