Nat Grid closes $11.8B takeover of KeySpan Corp. Utility now second-largest in U.S.

Byline: Bob Kievra

WESTBORO - National Grid PLC, the British gas and electric company with operations in Westboro, yesterday completed the $11.8 billion cash-and-debt takeover of KeySpan Corp., an 18-month effort that makes the conglomerate the second-largest utility in the United States.

The merger gained approval late Wednesday from the New York State Public Service Commission and company executives spent the next 36 hours reviewing the final conditions contained in the 32-page ruling.

National Grid said its directors approved the deal yesterday.

"We are totally committed to making sure our customers and shareholders receive the benefits coming from this merger," National Grid Chief Executive Steven J. Holliday said in a statement. "With our investment capability we can really unlock KeySpan's growth potential."

KeySpan, with 2.6 million customers, was the largest distributor of natural gas in the northeast, including 800,000 customers in Massachusetts.

National Grid officials said that the KeySpan name will be phased out over time and that the company would operate under the National Grid brand.

The chairman and chief executive of KeySpan, Robert B. Catell, will become chairman of National Grid USA and deputy chairman of National Grid.

Conditions imposed by the Public Service Commission will require National Grid to sell KeySpan's giant Queens, N.Y., power plant. The...