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AGL Energy Limited (ASX:AGK) has inked a $1.5 billion deal to buy New South Wales state-owned power plants subject to regulatory approval.
Australia’s second- largest electricity retailer says it has entered into an agreement with the state government to buy its Macquarie Generation.
The acquisition is however conditional on approval by the Australian Competition and Consumer Commission and a final decision is expected to be announced by March 4, 2014.
AGL says the assets would deliver the company ownership of the lowest cost, large-scale baseload generators in New South Wales and increase its registered generation capacity by about 79 per cent.
Shares in AGL Energy rose 3.23 per cent following yesterday’s announcement to close at $15.66.
AGL Energy reported a net profit of $389 million in the 2013 financial year.