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Sunday, April 08, 2007

GE Energy Building an Energy Empire

GE energy financial services has completed the purchase of Kinder Morgan Inc.'s  (KMI) natural gas retail distribution business.  This business covers a quarter million customers and Colorado, Nebraska, Wyoming and Hermisillo, Mexico.  The purchase of this business cost of $710 million.  They have acquired more than 11,900 miles distribution and transmission pipelines plus underground storage fields and related facilities.

The transaction was announced last fall in August of 2006 and is now received deregulatory approvals to move forward.  GE also holds investments and an additional 7700 miles of natural gas pipelines in North America.  They have past experience in the industry and this purchase significantly grows their core business and natural gas and energy distribution.  GE energy financial services is not going this investment alone, they are partnered with Alinda Capital Partners LLC, which will own a 50% stake in this recent acquisition.

US Retail Gas Operations of Kinder Morgan, Inc. Acquired by GE Energy Financial Services and Alinda Investments LLC