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U.S. group withdraws bid for U.K.’s Drax Group

A U.S.-based consortium has abandoned efforts to acquire British power generator Drax Group Ltd., the companies announced Thursday.
/ Source: The Associated Press

A U.S.-based consortium has abandoned efforts to acquire British power generator Drax Group Ltd., the companies announced Thursday.

Drax, which runs Britain’s largest coal power plant, had rejected a $4.1 billion bid on Nov. 15, but negotiations had continued with a consortium led by Baltimore-based Constellation Energy Group Inc.

Constellation had joined with New York investment firms Blackstone Group of New York and Perry Capital and an affiliate of San Francisco-based Hellman & Friedman in bidding for Drax.

The decision followed a series of meetings between the consortium and Drax shareholders, the announcement said.

“It is clear from those discussions, and soundings taken of Drax’s shareholders by the company and advisers to the shareholder committee, that a significant majority preferred to remain committed to the refinancing and listing of Drax,” the announcement said.

It said it expected that move to become effective on Dec. 15.