Tribunal backs sale of Macquarie Generation
The Australian Competition Tribunal (ACT) ruled in late June in favour of the sale of two state-owned power plants in Australia managed by Macquarie Generation to AGL Energy Ltd.
AGL Energy Ltd. took the case to the tribunal after the Australian Competition and Consumer Commission (ACCC) in March rejected the proposed transaction. The ACCC rejected the transaction due to the fact that after the acquisition 80% of the state's energy generation would be controlled by three companies: AGL, Origin and EnergyAustralia.
AGL Energy beat competition from Marubeni Corporation and ERM Power Ltd. to acquire the strategic assets.
Macquarie Generation's Liddell and Bayswater plants account for about 26 % of the New South Wales's generation capacity. According to the government, proceeds from the sale will be used to finance other infrastructure.
AGL owns power generation assets in Victoria and South Australia states, operates renewable energy plants and runs a retail electricity business.
Goldman Sachs Group Inc. was the financial adviser to the seller Macquarie Generation, and Deutsche advised AGL Energy Ltd.
This is not the first sale of state-owned assets in New South Wales. In April 2013, the state sold operating leases to Port Botany and Port Kembla. In May 2012, the state also sold the right to lease the Sydney Desalination Plant for A$2.3 billion.
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