FERC rejects $1.1B Bridgepoint-Energy Capital Partners private equity deal on competition concerns

Ethan Howland | Source: Utility DIVE | Posted 03/06/2024

London-based Bridgepoint said Monday it expects ECP will soon refile an application at the Federal Energy Regulatory Commission, with a closing on the deal expected in the second quarter.

AI generated summary

The Federal Energy Regulatory Commission rejected a planned $1.1 billion merger between Bridgepoint Group and Energy Capital Partners due to concerns about potential harm to competition, as ECP failed to show that the transaction wouldn't negatively impact market competition. After the rejection, Bridgepoint announced that ECP plans to re-file the application with additional information addressing the commission's decision, aiming to close the deal in the second quarter of the year.

The decision was influenced by Blue Owl Capital having a 15% stake in Bridgepoint, creating an affiliate relationship that necessitated disclosure to FERC as part of the merger review process. Despite ECP's claims that voting restrictions eliminated such affiliation, FERC disagreed and raised questions about the potential impact on competition. Public Citizen, a consumer advocacy group, highlighted ECP's failure to disclose Blue Owl's ownership in both companies, emphasizing the importance of transparency in such mergers and acquisitions sought for approval.

Link to Original Article

Please find the link to the full article below. (Please note that content provider might require a paid subscription)

Source Link: https://www.utilitydive.com/news/ferc-bridgepoint-energy-capital-partners-ecp/709135/

Create a free trial account: Sign Up

Grid monitor is free to try. No credit card required

FERC rejects $1.1B Bridgepoint-Energy Capital Partners private equity deal on competition concerns

AI generated summary

Link to Original Article

Create a free trial account: Sign Up

Already have an account? Login