The largest divestiture by
FDI in 2005 was Credit Suisse’s (Switzerland), a large financial services firm,
sale of American Ref-Fuel Holdings, an owner-operator of six waste-to-energy
facilities (and some other waste-processing facilities) in the Northeast, to
Danielson Holding.The total value of
the transaction was $2.0 billion, with an undetermined share going to American
International Group, a U.S.
insurance company, which owned part of American Ref-Fuel.Credit Suisse had acquired a share of
American Ref-Fuel in 2003 through its U.S. subsidiary, DLJ Merchant
Banking.Danielson Holding had been
primarily an insurance company until it acquired Covanta Energy, an independent
power producer with waste-to-energy facilities as well as generation capacity
fueled by other sources and a provider of water and wastewater treatment
services, when it exited bankruptcy in 2004.Danielson subsequently changed its name to Covanta Holding.
Table
3.Completed Divestitures of U.S.
Energy Assets by Foreign Direct Investors, 2005*
Divesting Foreign Parent Company
(Country)
U.S.
Subsidiary
Company or
Asset Being
Divested
Business of
Divested
Company
or Asset
Acquiring
U.S. Parent
Company
Estimated
Value
(million $)
Closing Month
Credit
Suisse
(Switzerland)
DLJ Merchant Banking
American Ref-Fuel Holdings (now ARC Holdings)
(partial)
electric power
Danielson Holding (now Covanta Holding)
2,047
a
January
Credit Suisse
(Switzerland)
DLJ Merchant Banking
Seabulk International
(51 percent)
oilfield services
SEACOR Holdings
559
July
Stolt Offshore (now Acergy)
(Luxembourg)
NA
diving & shallow water pipelay assets
oilfield services
Cal Dive International
124
b
November
Enbridge
(Canada)
Enbridge Energy Partners
midstream natural gas assets in Texas
midstream natural gas
TexStar Field Services
(now Regency Energy Partners)
108
December
*Includes only transactions valued at
$100 million or greater.
aIncludes an
undetermined share of American Ref-Fuel owned ultimately by American
International Group, a U.S. insurance company.
bTransaction
closed in 2005 but some assets not acquired until 2006.