NEW YORK – Northwest Natural Gas Co, said Monday it would buy Enron Corp.’s Portland General Electric unit for $1.8 billion in a deal that would combine Oregon’s largest natural gas utility with the state’s largest electric utility.  

The deal, which is subject to regulatory approval, is expected to close by the fourth quarter of 2002. Under the pact, Northwest Natural would pay 51.55 billion in cash, $200 million in preferred stock and $50 million in common stock. 

It would also assume about $1.1 billion in Portland General debt and preferred stock and the $75 million balance on its customer benefits obligation. The cash portion of the purchase would be financed by funds from commercial banks and institutional lenders, a Northwest spokes man said. The deal is a good one for both companies, one analyst said. 

“Enron has outgrown needing to own utility assets of that scale in the United States”, said Duane Grubert, an analyst with Sanford C.Bernstein & Co.