Mitsui and Tokyo Gas to buy Mexican power plant operations
Mitsui and Tokyo Gas announced plans to jointly acquire five gas-fired power stations and related assets in Mexico
for roughly $ 1.2 bn.
The companies intend to tap Mexico's power demand, which is rising in tandem with its economic growth. In addition to
the power stations with aggregate capacity of 2,233 MW, the purchase will include a pipeline company and an
employment firm.
A Mexican holding company 70 % owned by Mitsui and 30 % owned by Tokyo Gas will buy the operations from Spanish
energy firm Gas Natural SDG in the first half of 2010.
The Japanese firms can expect a steady flow of income from the power stations, which have long-term supply contracts
with the Mexican power authority that run through 2026-30. Mitsui and Tokyo Gas will put yen 50 bn ($ 548.25 mm)
toward the acquisition, with the rest to be funded through a project financing plan.
