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Clearance for AGL’s purchase of Loy Yang suspended

By  |  April 4, 2012

The Australian Competition and Consumer Commission has suspended its clearance process for AGL Energy’s proposed acquisition of the Loy Yang power station and adjacent coal mine. Loy Yang produces a third of Victoria’s electricity. Clearance will be suspended until the ACCC receives more information from AGL, to be provided by April 18.

AGL Energy seeks to purchase 67.5 percent of Loy Yang from Tepco, Ratch Australia, and three super funds. This would bring AGL’s ownership to 100 percent, as it already owns 32.5 percent of Loy Yang. Federal Court undertakings cap AGL’s ownership of Loy Yang to 35 percent, and so they must be removed to clear the acquisition.

Full content: Sydney Morning Herald