Kennecott has completed its acquisition of Nerco Inc., a natural resources company based in Portland, Ore., from PacifiCorp, the Portland-based parent company of Utah Power.
Nerco will become the surviving entity upon completion of a merger with a Kennecott subsididary. Nerco shareholders will receive $12 per share for their common stock.The Kennecott subsidiary received $384 million in cash in exchange for PacifiCorp's 82 percent ownership interest in Nerco. "As contemplated by the transaction agreement, an affiliate of PacifiCorp has funded a $225 million loan to the buyer and the balance of the proceeds were applied to reduce outstanding debt," said a spokesman for PacifiCorp.
With the closing of the transaction, Will Glasgow, formerly president of Nerco, will return to PacifiCorp as senior vice president and chief financial officer.
Nerco's primary business is open pit coal mining in Montana and Wyoming.