Utility snapped up down under
Singapore Power, the state-run monopoly electrical utility for that island nation, bought TXU Australia in a $3.7 billion ($5.5 billion in Australian currency) deal. The Australia utility was sold by the American TXU Corp. TXU's Australian operations are located m Victoria state (where Melbourne is located). It distributes gas and electricity, and the #3 energy retailer in that state.
For Singapore Power, which has to expand abroad to grow, the stable Australian economy is a safer bet than some less stable developing Asian companies, though it does own an electrical plant in South Korea. With the deal, Singapore Power will become one of the top Australian utility companies.
TXU is the largest public utility in Texas. It's been stung by a disastrous overseas venture in Europe, which went bankrupt in 2004.
Some repercussions:
- Singapore Power has already bought Australia utility PowerNet, which owns and operates the electrical grid in Victoria state.That deal was for about $1.7 billion US, and has proven quite profitable.
- Another state-owned Singapore utility, Singapore Telecommunications has set its eyes southward. That company bought Cable Wireless Optus in 2001, the #2 phone company in Australia, next to former monopoly Telstra. The company operated business lines, wireless services, and cable TV.
- Crushed by debt and the failure of its European ventures, TXU is clearing the deck. TXU also is in the market to sell TXU Gas, a subsidiary that should bring in $1.8 billion. The company has also sold its 1,900 mile gas pipeline for $512 million. TXU is getting out the gas distribution business, which it entered by buying a company called Enserch in 1996. All this will help reduce debt to manageable dimensions. It also sold two local West Texas telephone companies this year for $527 million.
- The midwives to the deal, the investment bankers, are the usual suspects: Morgan-Stanley for Singapore Power and Credit Suisse First Boston for TXU.
8:01:50 PM 
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