MADISON, Wis. and MINNEAPOLIS, July 15, 2002 — Alliant Energy Corp. and Cargill Inc. recently announced that Alliant Energy’s share of the Cargill-Alliant, LLC joint venture will be purchased by Cargill at book value.
Pending federal regulatory approval, the transaction is expected to close by fall of 2002 and Alliant Energy will then effectively exit the domestic electricity trading business.
Alliant Energy entered into the joint venture with Cargill, a world-class commodity-trading firm, in 1997. The joint venture was designed to help both organizations succeed in a more competitive electric power industry. The slowing of electric industry restructuring across the country was the reason leading Cargill and Alliant Energy to agree to the purchase and sale transaction.
“The joint venture has been a successful one for both of our organizations,” says James Hoffman, executive vice president – business development for Alliant Energy. “Given the pace of industry restructuring in Wisconsin and Iowa and Alliant Energy’s desire to narrow its strategic focus, this is the appropriate time to sell our interest in the joint venture. We do so with the greatest level of respect for the people at Cargill and believe each of our organizations has benefited from the opportunity to learn from each other.”
“With 136-years experience managing risk in markets ranging from grain to natural gas, we believe we have the expertise to continue being successful in electricity,” said David Gabriel, Cargill senior vice president of Gas and Electricity. “This represents an outstanding opportunity to fill the void created by companies exiting the energy trading and risk management business in recently’s volatile market. With a strong credit rating, healthy balance sheet and a talented team of people resolutely focused on customer service, we are poised to grow and build upon the firm foundation created by Cargill- Alliant.”
Alliant Energy ( www.alliantenergy.com ), headquartered in Madison, Wis., is a growing energy-services provider with both domestic and international operations. Alliant Energy, through its subsidiaries and partners, provides electric, natural gas, water and steam services to over three million customers worldwide. Alliant Energy Resources, Inc., home of the company’s non-utility businesses, has operations and investments throughout the United States as well as in Australia, Brazil, China and New Zealand.
Cargill Incorporated is an international marketer, processor and distributor of agricultural, food, financial and industrial products and services with 90,000 employees in 57 countries. The company provides distinctive customer solutions in supply chain management, food applications and health and nutrition.