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Enron Mail |
This morning, we announced an offer to acquire London-based MG plc, one of=
=20 the world=01,s leading metals marketers, for $446 million. We have been=20 monitoring the global metals market for several years, and we believe that= =20 now is the right time to enter this $120 billion market. We are confident= =20 that our successful business model, which we have proven in the natural gas= =20 and electricity markets, gives us a tremendous advantage in a market that i= s=20 undergoing fundamental change. Our offer to acquire MG plc has been unanimously recommended by MG plc=01,s= =20 board of directors, and we expect to close the transaction by early third= =20 quarter of this year, following shareholder and customary regulatory=20 approvals. MG plc is a leading independent company in global non-ferrous metals tradin= g=20 and marketing and the only such company that is publicly traded. =20 Headquartered in London with major offices in New York and Frankfurt, MG pl= c=20 has 330 employees in 14 countries. It is the world=01,s leading copper=20 merchant, one of the top three merchants of copper concentrates and nickel,= =20 and a leading European merchant of recycled metal. Other products that MG= =20 plc markets include aluminum, lead, tin, zinc, brass and stainless steel. This transaction provides Enron with access to new customers and enables=20 cross-marketing opportunities. We plan to sell Enron energy products to MG= =20 plc customers and offer bundled products combining metals and power=20 outsourcing. Enron will help producers and consumers manage the risks=20 inherent in volatile raw materials and energy markets, and we will improve= =20 commodity prices for both buyers and sellers. MG plc=01,s existing market-making capabilities and market knowledge provid= e an=20 immediate platform upon which to overlay Enron=01,s proven ability to offer= =20 innovative e-commerce-enabled services to commodity-based industries. Our= =20 new metals business will be integrated into our wholesale business by Enron= =20 Europe CEO John Sherriff, who will work closely with Enron Net Works CEO Gr= eg=20 Whalley.
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