PG&E Nears Deal To Sell Stake To KKR
Portfolio Pulse from Erica Kollmann
Pacific Gas & Electric Co. (NYSE:PCG) is close to finalizing a deal to sell a 49.9% stake in a new subsidiary, Pacific Generation, to KKR & Co. Inc. (NYSE:KKR). This subsidiary will include PG&E's hydroelectric, natural gas, solar, and battery facilities, valued at nearly $3.5 billion. The deal, estimated to be worth between $2 billion and $3 billion, aims to fund infrastructure upgrades and mitigate fire risks. However, the California Public Utilities Commission has concerns about the sale and has considered blocking it, pending a final decision.

April 30, 2024 | 9:36 pm
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POSITIVE IMPACT
KKR & Co. Inc. is in the final stages of acquiring a 49.9% stake in PG&E's new subsidiary, Pacific Generation, which includes various energy assets.
The acquisition aligns with KKR's investment strategy in energy and infrastructure, potentially adding valuable assets to its portfolio. The deal's success depends on regulatory approval, which adds a layer of uncertainty but is generally seen as a positive move for KKR.
CONFIDENCE 70
IMPORTANCE 70
RELEVANCE 80
POSITIVE IMPACT
PG&E is nearing a deal to sell a significant stake in its power generation assets to KKR, aiming to raise funds for infrastructure improvements.
The potential sale to KKR could provide PG&E with necessary funds for infrastructure upgrades, which is positive. However, regulatory hurdles and the CPUC's concerns introduce uncertainty, potentially limiting the immediate positive impact on the stock.
CONFIDENCE 75
IMPORTANCE 80
RELEVANCE 90