Bloomberg News

CLP, Southern Grid in Talks to Buy Exxon Power Unit Stake

March 15, 2012

CLP Holdings Ltd. (2) and China Southern Power Grid Co. are in talks to buy Exxon Mobil Corp. (XOM)’s 60 percent stake in Castle Peak Power Co., owner of three Hong Kong power plants.

China Southern Grid, owner of the nation’s second-largest power-distribution system, is a “new party” in discussions that have been taking place for some time, CLP said in a statement to the Hong Kong stock exchange yesterday. China State Grid Corp. is China’s largest electricity distributor.

Castle Peak’s plants are capable of generating 6,908 megawatts, according to the statement. The company is a joint venture between Hong Kong-based CLP and Irving, Texas-based Exxon Mobil. Castle Peak was formed in 1981 and currently owns natural gas, coal and diesel-fired power plants.

Exxon Chairman and Chief Executive Officer Rex Tillerson has been focusing oil exploration as Brent crude, a global benchmark, rose 11 percent this year. The company said on Jan. 29 it will sell its stake in Exxon Mobil Yugen Kaisha, a Japanese oil refining joint venture, for $3.9 billion.

CLP released it statement after the close of trading in Hong Kong yesterday. The stock fell 0.8 percent to HK$67.70.

To contact the reporter on this story: Benjamin Haas in New York at bhaas7@bloomberg.net

To contact the editor responsible for this story: Susan Warren at susanwarren@bloomberg.net


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