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 state's generation capacity. According to the government, proceeds from the sale will be used to finance other infrastructure.
"If this sale is approved by the ACCC, it will put $1.725 billion on the table for new infrastructure projects and continue the critical process of breaking down the inflated costs of electricity prices for consumers."
It is hard to imagine that the ACCC would oppose this sale on competition grounds, given that AGL has no significant generation capacity within NSW, and even after the sale, would hold less than one third of the State's capacity.
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.