By OGJ editors
HOUSTON, Oct. 22 -- E.On AG's UK subsidiary Powergen PLC said it will acquire Dallas-based TXU Corp.'s European retail business as well as three coal-fired power plants and the company's Citigen City of London CHP scheme for £1.37 billion (2.17 billion euros) plus the assumption of £247 million of securitized receivables, and certain pension and other obligations.
TXU's continental European businesses and its trading and power purchase agreements, however, are not included in the deals, Powergen said.
Through the addition of TXU's 5.5 million retail electricity and natural gas customers in the UK, Powergen will become the largest electricity supplier in the UK, with more than 6 million customers, the company said. Based on its acquired gas customer base, Powergen will be the second largest supplier of gas in the UK, with about 2.4 million customers.
The deal still awaits approval by the European Commission, but the EC already has granted a derogation, which will allow the transaction to advance before completion of the approval process.
Transaction details
Included in the transaction are Drakelow C, a 999 Mw power station near Burton-on-Trent; High Marnham; a 945 Mw station in Nottinghamshire; Ironbridge, a 970 Mw station in Shropshire; and the Citigen CHP scheme.
About 1,900 TXU employees, mainly based in Ipswich, have been transferred to Powergen.
"Our immediate priority is to stabilize the TXU retail business and to work to remove any staff uncertainty as soon as possible," said Paul Golby, Powergen UK's chief executive. "We have a good record in managing change during previous acquisitions and look forward to talking to staff and their trade union representatives in the near future," he added.
