Sparks could fly in the AGL-MacGen game

AGL has an obvious strategic need to generate capacity to provide a hedge for its retail business. How it responds to the ACCC's decision on its MacGen bid will reveal the importance of the acquisition.

It wouldn’t have come as a shock to AGL that the Australian Competition and Consumer Commission has “issues” with its proposed acquisition of Macquarie Generation. The questions for AGL are whether those issues are sufficient to knock it out of the bidding for MacGen; whether it is in a position to win the auction; and, if so, whether it considers the NSW generator sufficiently strategic to take on the ACCC.



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