Heavyweight

European financial heavyweight Fortis became the latest banker to muscle into North America’s energy marketing business last week with the estimated $415 million purchase of Duke Energy’s commercial marketing and trading business. Fortis, which ranks among the 20 largest financial institutions in Europe, will pay Duke $210 million for the business and will pay an amount equal to the value of Duke’s portfolio of contracts and net working capital associated with the business when the transaction closes.

European financial heavyweight Fortis muscled into North America’s energy marketing business on Tuesday with the estimated $415 million purchase of Duke Energy’s commercial marketing and trading business. Fortis, which ranks among the 20 largest financial institutions in Europe, will pay Duke $210 million for the business and agreed to pay an amount equal to the value of Duke’s portfolio of contracts and net working capital associated with the business when the transaction closes.

CMS Energy joined a growing list of former heavyweight energy marketers last Monday, announcing it had terminated speculative trades, and could completely exit wholesale natural gas and power trades in the future. By Friday, El Paso Corp. had also joined the list (see related story). CMS, which had appointed a special committee of its board of directors to investigate the trading practices, said it was committed to preventing questionable business practices. Going forward, CMS will require all employees to complete an ethics program.