March 09, 2007

TXU buyers step away from coal
The proposed acquisition of US utility TXU by two private equity firms is being called an “earthquake” in the US power industry, since the new owners will abandon plans for controversial coal plants.
On 26 February, Kohlberg, Kravis Roberts & Co, along with Texas Pacific Group, announced an agreement to acquire the Dallas, Texas-based power company for $69.25/share, or approximately $45 billion. The new owners, based in New York and Fort Worth, Texas, will take the company private, pending shareholders’ and regulators’ approval, which they expect later in 2007.
The big environmental news is the prospective owners’ intention to cancel eight of 11 coal-fired power plants that TXU had planned to build in Texas, representing 9,000MW of capacity.