Macquarie to buy US natural gas business

Macquarie Group Ltd has entered into an agreement to acquire the downstream natural
gas trading business of the Houston, United States-based Constellation Energy, one
of the largest marketers of natural gas in North America.
Macquarie did not disclose the purchase price.
"When combined with Macquarie's existing North American gas trading business,
Macquarie Cook Energy, the business will become a leading participant in the North
American wholesale natural gas market," Macquarie said in a statement on Wednesday.
The transaction is expected to close in the second quarter of 2009 and is subject to
regulatory approvals and other conditions.
The majority of Macquarie Cook Energy's operations will be relocated to Houston,
where it will be headquartered.
The integrated business will be led by Nicholas O'Kane, executive director and
global head of Macquarie's energy markets division.
Mr O'Kane said in a statement that Constellation Energy's natural gas trading
operations were "a highly complementary fit" with Macquarie Cook Energy.
Separately on Wednesday, the companies announced that they had signed a letter of
intent under which Macquarie Cook Energy will supply natural gas to Constellation's
Louisville, Kentucky-based retail gas division, Constellation NewEnergy Gas.
Mr O'Kane said the acquisition of Constellation Energy's downstream natural gas
trading business "will bolster areas in which we currently have a relatively low
market share, notably in the Mid-Continent and Canadian markets".
Constellation has about 130 employees, while Macquarie Cook Energy has 80 staff.
Macquarie Group was among the worst performers on the Australian stock exchange on
Wednesday, with its shares closing $1.86, or 7.52 per cent, lower at $22.87.