Scotland’s largest utility said Monday that it has agreed to buy U.S. utility PacifiCorp for nearly $13 billion.
Although other foreign companies have invested in power plants in the United States, this deal would be the first purchase of an entire U.S. electric utility by a foreign company if it receives regulatory approval.
The deal would create a company with 7 million customers in Britain and the United States and 23,500 employees worldwide.
PacifiCorp has 1.4 million customers in seven Western states and about 10,000 employees. It is the holding company for Pacific Power and Utah Power. ScottishPower supplies gas, water, electricity and phone services to 5 million British homes and has some 15,000 employees.
Some employees may lose their jobs after the merger is completed, the joint release said. All union contracts will be honored.
ScottishPower agreed to pay stock worth almost $8 billion, a 21 percent premium over PacifiCorp’s Friday stock closing price. ScottishPower also will assume PacifiCorp’s $4.9 billion in debt.
ScottishPower shareholders will own 64 percent of the combined company, PacifiCorp shareholders 36 percent.
The merged company will be based in Glasgow, but PacifiCorp would run ScottishPower’s U.S. operations from Portland.
