FTC Clears PacifiCorp’s Purchase of Utility

PacifiCorp received U.S. antitrust approval for its proposed $10.68-billion purchase of Energy Group, raising the stakes in what has turned into a takeover battle for the London-based utility. To win Federal Trade Commission clearance, Portland, Ore.-based PacifiCorp agreed to divest two coal mines on the Navajo reservation in Arizona that it would gain control of as part of the acquisition. Without the sale, PacifiCorp would have the power to raise wholesale electricity rates to consumers in the Western U.S. during off-peak hours, the FTC said. This was the final federal regulatory approval the companies needed. Dallas-based Texas Utilities Co. has said it could compete with PacifiCorp’s bid and make a decision by March 9. Energy Group owns Eastern Group, Britain’s largest electricity supplier, and Peabody Holding, which produces about 15% of the coal mined in the U.S. PacifiCorp shares fell 25 cents to close at $24.13 on the NYSE.