Southern Company acquires stake in Bewag

Southern Company, through its Southern Energy Inc. subsidiary, has purchased 26 percent of Berlin’s electric utility, Berliner Kraft und Licht AG, for approximately $820 million cash. The purchase has been approved by Berlin’s parliament and German regulators. Financial closing was completed today.

Southern Company formed a consortium with two leading German utilities, PreussenElektra and Bayernwerk. The consortium will own 75 percent of the Berlin utility, known commonly as Bewag.

“This acquisition offers us an opportunity to capture growth in the world’s second-largest integrated utility market while enhancing earnings for Southern Company shareholders,” said A.W. Dahlberg, Southern Company’s chairman, president and chief executive officer.

Southern Company (NYSE: SO), the largest producer of electricity in the United States, is the parent firm of Alabama Power, Georgia Power, Gulf Power, Mississippi Power and Savannah Electric. Based in Atlanta, Southern Company now supplies electricity in nine countries on four continents and provides energy-related marketing, trading and technical services and wireless telecommunications. Southern Company’s common stock is one of the 20 most widely held corporate stocks in America.

Southern Energy Inc., a unit of Southern Company, develops, builds, owns and operates power production and delivery facilities and provides a broad range of services to utilities and industrial companies around the world.

PreussenElektra is owned by Veba, and Bayernwerk is owned by Viag. Both parent companies have numerous non-electric holdings, such as chemicals, real estate and telecommunications.