Thai regulator blocks state-run PTT’s $4b bid to buy Glow Energy

Power grids. Photo: Fré Sonneveld/unsplash

Thailand’s Energy Regulatory Commission (ERC) has blocked PTT Pcl subsidiary Global Power Synergy Pcl (GPSC) from acquiring a 69.11 per cent stake in Glow Energy Pcl.

In a statement, ERC secretary general Naruepat Amornkosit said that the commission passed a unanimous resolution to reject the acquisition over concerns it could monopolise power purchase agreements (PPAs) in Map Ta Phut and violate certain sections of the Energy Business Act.

Were the acquisition to go through, GPSC would come to control around 80 per cent of PPAs in Map Ta Phut. The remaining 20 per cent is held by the Provincial Electricity Authority.

The value of this acquisition was estimated to be worth 139 billion baht ($4.3 billion) and the companies had previously announced plans to complete the transaction by November.

As part of the deal announced in June, GPSC was to acquire the 69.11 per cent stake in Glow Energy from French energy major Engie and make a tender offer to buy the remaining 30.89 per cent later.

PTT was keen to buy the stake in line with its policy to focus on energy investments in the Eastern Economic Corridor. Additionally, Glow Energy’s power plants could have helped reduce its costs of generating electricity in Map Ta Phut.

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Thai PTT to buy Engie’s Glow Energy in deal that could be worth over $4b