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Origin Energy expected to buy NSW power plant

Diversified and vertically integrated energy company Origin Energy (ASX: ORG) is expected to shortly finalise a deal with the New South Wales government for the purchase of the Eraring power plant according to a report in The Australian Financial Review.

The NSW government is in the midst of a massive sell off of the state’s power assets. Once completed, the state is expected to have raised over $5 billion.

With limited details surrounding the bid process publically available, investors will have to wait and see who the successful bidders are. Major player AGL Energy (ASX: AGK) however is not expected to put in any bids.

Foolish takeaway

Many government-owned corporations have prospered in private hands. CSL (ASX: CSL) and Commonwealth Bank (ASX: CBA) are two prime examples. Provided the power assets are purchased for a reasonable price, shareholders will likely welcome any acquisitions achieved.

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Motley Fool contributor Tim McArthur owns shares in Origin Energy.

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