JPMorgan will buy a power company from Texas for $ 2.78 billion

The investment fund JPMorgan Chase, which for many years has been steadily absorbing utilities, intends to make the largest deal in the sector. The bank will absorb El Paso Electric, an energy company from Texas, for $2.78 billion.
Taking into account debt obligations, the transaction amount will be $4.3 billion, reports The Wall Street Journal. Analysts believe JPMorgan shares are a reliable investment and expect their further appreciation.
The JPMorgan Foundation, which invests in US infrastructure, already has 19 energy, water and infrastructure companies. JPMorgan’s public assets include such companies as Summit Utilities, a distributor of natural gas, and Novatus Energy, a solar and wind energy producer.
The company El Paso Electric, which is being acquired now, is Managing Director of JPMorgan Asset Management, Landy Gilbert called the fund's flagship investment in the United States.
Gilbert declined to discuss why the foundation chose El Paso Electric. However, it is known that in Texas there are some of the most fertile shale deposits in the world. Due to the multitude of drilling wells that pump oil and natural gas, the demand for electricity in the region is steadily growing.
Wall Street analysts give a positive outlook for JPMorgan Chase. Experts consider the paper a stable investment.
During the year, JPMorgan shares will rise by 9%, to $118.27 per share.

The information above cannot be considered as an investment advice and past results do not indicate future performance.
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