PPL To Buy E.ON Network For $5.6B

Pennsylvania-based power company, PPL, will acquire the U.K. electricity networks business of German utility, E.ON.

Pennsylvania-based power company, PPL, will acquire the U.K. electricity networks business of German utility, E.ON, The Wall Street Journal reports. PPL will pay $5.6 billion in cash and assume $800 million in existing public debt for Central Networks. PPL will finance the acquisition through a combination of common equity, convertible equity units and debt. The deal is expected to be completed by April 2011. Investment vehicle Cheung Kong Infrastructure and MidAmerican Energy Holdings were also interested in the auction, adds Financial Times.

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