FERC last Thursday issued a letter order clearing the way for Merrill Lynch Commodities to buy the energy trading operations of Entergy-Koch LP., a joint venture of Entergy Corp. and Koch Industries Inc., a deal first unveiled last month (see NGI, Sept. 6).

FERC noted that the jurisdictional facilities associated with the proposed transaction include wholesale power sales and transmission agreements, energy management agreements and related accounts, books and records.

Under the transaction, Merrill Lynch Commodities, an indirect subsidiary of investment banking firm Merrill Lynch & Co., will acquire both the power marketing business and the natural gas trading business of Entergy-Koch Trading, as well as related intellectual property and other assets. “After consideration, it is concluded that the proposed transaction is consistent with the public interest and is authorized,” subject to certain conditions, the letter order said.

The Entergy-Koch trading unit has focused on natural gas, electricity and weather-related contracts. But Merrill Lynch has said it anticipates making future investments to expand the business into other aspects of energy trading.

The deal is expected to close in the fourth quarter and is subject to other regulatory approvals besides FERC.

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