AGL ok to buy Loy Yang

AGL Energy has received the regulatory greenlight for its $450 million takeover of Victoria’s coal-fired Loy Yang power station, one of Australia’s largest polluters.
The Australian Competition and Consumer Commission (ACCC) said this week that it would not oppose AGL’s acquisition of Loy Yang, the country’s third largest power station.
AGL previously held 32 percent of Loy Yang, and sought approval to buy out its fellow shareholders. Loy Yang traded unprofitably in 2011, losing $31.9 million due to a combination of soft wholesale prices and weaker demand.
Loy Yang is also $2.5 billion in debt.
AGL launched a $900 million share sale this week, part of which will be used for the acquisition with some used on the Loy Yang debt.
AGL will also receive a $240 million carbon compensation payment before June 30 and permits worth $1 billion over the next decade.