Enova, Pacific Enterprises to Buy AIG

San Diego-based Enova Corp. and Los Angeles-based Pacific Enterprises said they will pay $190 million to acquire AIG Trading Corp. in a move that would link the giant California power suppliers to an energy trading firm. Each of the utilities, which have agreed to merge, will pay half the purchase price and acquire all of AIG Trading’s outstanding common stock. The acquisition of Greenwich, Conn.-based AIG, one of the nation’s leading natural gas and power marketers, comes as the U.S. utility industry is being deregulated, heightening competition for power customers. In June, Enova and Pacific Enterprises won preliminary approval from the government to merge in a $4-billion deal that would create the nation’s largest U.S. utility in terms of customers. The merger is expected to be completed early next year, subject to approval by state regulators. Pacific Enterprises is the parent company of Southern California Gas Co. Enova’s main subsidiary is San Diego Gas & Electric Co. The deal will give AIG Trading access to the utilities’ massive power generation and transmission resources. AIG Trading is a subsidiary American International Group, a New York-based insurance company. The acquisition is subject to the approval of the Federal Energy Regulatory Commission.