PacifiCorp reached a preliminary agreement Thursday to buy U.K.-based Energy Group PLC for $9.8 billion in cash, assumed debt and other obligations, sources said.
The deal would create a company that could compete with the biggest global power companies, such as Enron Corp. and Southern Co.
To help finance the deal, Portland-based PacifiCorp will sell its telecommunications unit, Pacific Telecom, for about $1.5 billion, sources said. No buyer was identified.
If the acquisition is completed, PacifiCorp chief executive Frederick Buckman will create a company with about 5 million customers on three continents and more than $10 billion in revenue.
“He’s making it a global player overnight. They’ll give Enron a run for their money,” said NatWest Securities analyst Edward Tirello.
