Business, Energy

KKR led consortium acquires TXU

02.26.07 | 4 Comments

In what can only be described as a mega-deal, investment firm Kohlberg, Kravis, Roberts, & Co. are paying a 15% premium over market close, $69.25 per share, to take TXU Corp private. The $31.8 billion dollar deal is the largest ever to take a company private.

Why do we care? Simple, as a consequence of the takeover, TXU’s planned 11 mega-coal plants will be reduced to 3 as a result of the acquisition and stronger environmental policies are likely to be enacted. The reduction will displace some 56 million tons of carbon emissions, equivalent to preventing 10.2 million new cars from appearing on the road.

This is an interesting development to be sure. Let’s hope the focus shifts from coal to other, less polluting generation mechanisms as a private company. But axing 8 planned coal plants is a good start.

If you liked this entry, Digg It!
Tune: Sugar Bee by Cleveland Crochet
Technorati Tags: | | | Mike Harding Blog