Centrica expects to close on deal on USD 1 billion on US oil group buy
The Financial Times reported that Centrica will be spending more than USD 1 billion on its US oil group acquisitions. The British gas owner said it will be purchasing the Energy Marketing arm of Hess Oil Group to the tune of USD 731 million. Energy Marketing is a gas and electricity supplier based in New Jersey that has over 23,000 non-retail customers. Moreover, Centrica's Direct Energy subsidiary will be giving about USD 300 million in working capital to complete the acquisition. The deal is expected to be finalized this year.
The purchase of Energy Marketing is part of Centrica's goal of increasing the profitability of is energy supply activities in North America. Centrica revealed that the sales of the New Jersey-based firm reached more than USD 6 billion last year. In 2013, Energy Marketing is expected to give an estimated USD 200 million in earnings before taxes and interest. The British gas owner is also eyeing the storage and pipeline capacity of Hess.