28 December 2009
HOUSTON — Macquarie Group (“Macquarie”) (ASX: MQG; ADR: MQBKY) today announced that its subsidiary, Macquarie Cook Power, has entered into an agreement to acquire substantially all of the wholesale electric marketing and trading portfolio (“Portfolio”) of Integrys Energy Group’s (NYSE: TEG) nonregulated subsidiary, Integrys Energy Services (“Integrys”). The acquisition will approximately double the customer base and scale of Macquarie Cook Power’s existing power trading business, while strengthening its position across key North American power markets.
The Portfolio consists of various power transactions, products and trading positions, including physical forwards, financial transmission rights and derivatives. The Portfolio had an annual average total gross volume in excess of 125 million megawatt-hours (MWh) over the past 3 years.
Headquartered in Houston, Macquarie Cook Power is an electric trading and marketing company servicing North American electricity producers, utilities, industrial users and other large wholesale energy sector participants. Macquarie Cook Power operates alongside Macquarie Cook Energy, the firm’s North American natural gas trading affiliate with average trading volumes of circa 11 billion cubic feet (bcf) per day.
“This transaction is consistent with Macquarie’s long-standing commitment to the commodities space and continues the growth of our energy markets division organically and, where appropriate, through acquisitions of companies and trading books,” said Nicholas O’Kane, Executive Director and Global Head of Macquarie’s Energy Markets Division.
“The Integrys Portfolio is particularly attractive for our energy markets activities in North America. It expands our volumes and penetration across a number of major power markets on the continent, making us even more relevant to both existing and new customers.”
“Similar to what we did earlier this year with the acquisition of Constellation Energy Group’s downstream natural gas trading business, we expect to integrate the Portfolio into Macquarie Cook Power and look forward to developing enduring relationships with our new clients and counterparties,” added O’Kane.
Economic ownership of substantially all of the Portfolio is expected to transfer to Macquarie by the end of the first quarter 2010. Financial close of the transaction is expected in the second quarter of 2010 and is subject to regulatory approvals and other customary closing conditions.
Financial details of the transaction were not disclosed.
Macquarie Group (Macquarie) is a global provider of banking, financial, advisory, investment and funds management services. Macquarie Group Limited is listed in Australia (ASX:MQG) and is regulated by APRA, the Australian banking regulator, as the owner of Macquarie Bank Limited, an authorized deposit taker. Founded in 1969, Macquarie operates in more than 28 countries and employs over 12,700 people. Assets under management total more than $US191 billion (as of September 30, 2009).
Through its Fixed Income, Currencies and Commodities (FICC) Group, Macquarie is active in a broad range of financial and physical commodities markets globally, with a worldwide team of professionals who have in-depth knowledge across a range of commodity sectors.
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