An investor group led by Kohlberg Kravis Roberts & Co. and Texas Pacific Group has entered into an agreement with TXU Corp., a Dallas-headquartered energy company, to acquire TXU for $45 billion. Goldman Sachs Capital Partners, Lehman Brothers, Citigroup and Morgan Stanley are all part of the investor group.
As a result of this acquisition, 11 planned coal-fueled generation plants will be scaled down to three – preventing 56 million tons of carbon emissions per year, the companies say. In addition, the new TXU owners plan on doubling the company's purchase of wind power to more than 1,500 MW.
‘With these long-term and very informed investors, we can execute a new strategy that will allow us to reshape TXU's program to build new electric generation units,’ says C. John Wilder, chairman and chief executive officer of TXU. ‘Our new strategy will meet two important objectives: addressing Texas' immediate and future energy and reliability needs; and doing so in a manner that responds to the desires of policy makers and other key stakeholders to incorporate new technology advancements and conservation.’
Gov. Rick Perry, R-Texas, supports the agreement.
‘With multiple energy companies proposing new projects to expand their energy capacity, and today's announcement that rates will be reduced by 10 percent for TXU customers, we know that market forces are working to ensure our energy supply is both more abundant and more affordable as we look to the future,’ Perry comments.
The transaction, which is subject to TXU shareholders' approval, is expected to close in the second half of 2007.