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AGL Energy says it will buy Macquarie Generation for A$1.505 billion
February 11, 2014 / 10:25 PM / 4 years ago

AGL Energy says it will buy Macquarie Generation for A$1.505 billion

SYDNEY (Reuters) - AGL Energy Ltd AGK.AX has agreed a deal to buy the Australian state-owned power company Macquarie Generation for A$1.505 billion ($1.36 billion), the Australian gas and electricity retailer said on Wednesday.

AGL said the deal with the New South Wales government for the two coal-fired power stations is conditional on winning the approval of the Australian Competition and Consumer Commission, which last week warned that the deal could result in a “substantial lessening of competition”.

AGL said it intends to fund the transaction by way of a renounceable rights issue.

The NSW government has said proceeds of the Macquarie Generation sale will go towards an A$11.5 billion motorway scheme to ease traffic congestion in Sydney’s western suburbs. ($1 = 1.1072 Australian dollars)

Reporting by Colin Packham

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