TXU Corp., a Dallas-based energy holding company, has reached an agreement with its shareholders to proceed with a merger with the Texas Energy Future Holdings Limited Partnership (TEF). TEF was formed by a group of investors led by Kohlberg Kravis Roberts & Co. (KKR) and Texas Pacific Group (TPG) to facilitate the merger.
Under the terms of the agreement, upon close of the merger, TXU shareholders will be entitled to $69.25 in cash for each share of TXU common stock held, TXU says. The merger, which requires approval by the Nuclear Regulatory Commission and completion of other customary closing conditions, is expected to close by the end of the year.
Luminant, TXU's competitive power generation business, is currently the largest purchaser of wind-generated electricity in Texas and fifth largest in the U.S., the company notes.