Aquila to Buy Cogentrix Energy

Aquila Inc., a U.S. utility owner and energy trader, agreed to buy closely held Cogentrix Energy Inc. for $415 million in cash to almost double its power-generation capacity.

Kansas City, Mo.-based Aquila said it also will assume $1.1 billion of debt. It will get stakes in 13 plants in seven U.S. states and the Dominican Republic. Chief Executive Robert Green said the purchase of Charlotte, N.C.-based Cogentrix will reduce the reliance on energy trading, which it considers a riskier business.

Shares of Aquila fell $1.06 to $16.04 on the NYSE.