(EnergyAsia, March 6 2012, Tuesday) — Australia’s AGL Energy said it has agreed to acquire the remaining 67.46% stake in Victoria state’s largest power station, Loy Yang A, and an adjacent coal mine for a total of A$448 million that it does not own. (US$1=A$0.94).

Subject to regulators’ approval, AGL expects to complete the acquisition of the 2,200MW plant and the mine which supplies its entire coal feedstock from current owner, Great Energy Alliance Corp (GEAC), by mid-2012.

GEAC is a consortium comprising Japan’s Tepco, Thailand’s Ratchaburi Electricity and Australian investment funds.

According to AGL, Loy Yang A meets 30% of Victoria’s electricity demand, while the brown coal mine is the largest in Australia and the single largest source of carbon emissions in the country.

The proposed deal values GEAC’s value at A$3.1 billion, which AGL will fund through a combination of securities worth A$1.5 billion, loans and a rights entitlement offer to shareholders.

Tepco will continue to provide technical support and managerial services for the plant’s operations for at least another seven years, AGL said.