By Jim Polson
Jan. 20 (Bloomberg) -- Goldman Sachs Group Inc., the largest adviser on mergers and acquisitions, agreed to buy overseas commodities-trading assets from U.S. power producer Constellation Energy Group Inc.
The sale includes coal, freight and European energy-trading operations, Baltimore-based Constellation said today in a statement. Terms weren’t disclosed.
The London-based trading business was among operations Constellation put up for sale in August to raise cash and reduce collateral requirements. Constellation accepted a $4.7 billion takeover bid from Warren Buffett’s MidAmerican Energy Holdings Co. to avert a credit downgrade it said would likely lead to bankruptcy, then dropped that deal to instead sell a stake in its nuclear plants to Electricite de France SA for $4.5 billion.
The asset sale to a Goldman affiliate, expected to close in the current quarter, includes trading of power, natural gas and greenhouse-gas credits, Constellation said. Company spokesman Larry McDonnell declined to comment on how much the transaction will reduce collateral requirements.
“These businesses complement our existing operations in London,” Goldman spokesman Michael DuVally said. He declined to comment on prospects for the operations.
Goldman dropped $6.23, or 8.5 percent, to $66.82 at 10:04 a.m. in New York Stock Exchange composite trading. Constellation fell 46 cents, or 1.7 percent, to $27.15.
To contact the reporter on this story: Jim Polson in New York at jpolson@bloomberg.net.
Posts
No comments:
Post a Comment