GE to Buy Enron Wind Power Unit
Enron Corp. (Houston, TX) announced that it has agreed to sell its Enron Wind Corp. (Tehachapi, CA) wind turbine business to General Electric Co. (Fairfield, CT). Financial terms were not disclosed, but sources state that General Electric will pay about $250.0 million. The sale must be approved by a bankruptcy court judge and regulators. Proceeds will be used to repay Enron’s creditors.
General Electric said the proposed acquisition marked its first investment in wind power, an industry which it expects to grow at an annual rate of some 20 percent. "This acquisition will broaden the environmentally friendly, power generation options available to our customers," said John Rice, president of General Electric Power Systems.