Drax to buy two US wood pellet manufacturers

Maryam Cockar Sharecast | 27 Feb, 2017 08:30 - Updated: 08:30 | | |

biomass wood pellets drax
  • 300.10
  • -0.92%-2.80
  • Max: 302.80
  • Min: 299.20
  • Volume: 65,778
  • MM 200 : n/a
09:35 25/04/17
  • 19,634.34
  • 0.16%31.51
  • Max: 19,643.24
  • Min: 19,601.99
  • Volume: 0
  • MM 200 : n/a
09:35 25/04/17
  • 1,517.91
  • 0.13%1.91
  • Max: 1,519.41
  • Min: 1,516.75
  • Volume: 0
  • MM 200 : n/a
09:35 25/04/17
  • 8,357.54
  • 0.25%21.04
  • Max: 8,368.38
  • Min: 8,260.39
  • Volume: 0
  • MM 200 : n/a
09:35 25/04/17
  • 4,048.46
  • 0.15%6.06
  • Max: 4,050.42
  • Min: 4,041.02
  • Volume: 0
  • MM 200 : n/a
09:35 25/04/17
  • 3,993.55
  • 0.15%5.99
  • Max: 3,995.37
  • Min: 3,986.46
  • Volume: 0
  • MM 200 : n/a
09:35 25/04/17

Electricity generator Drax Group confirmed it is to buy Texas Pellets and Louisiana Pellets, which are currently going through the bankruptcy process in the US.

Drax said that it has submitted initial cash bids for Texas and Louisiana as part of an auction process to be held on Wednesday and Thursday and that while the bids are binding and could be accepted by the sellers, it is expected that the successful buyer will be determined through auctions.

The FTSE 250 company is aiming to expand its self-supply compressed wood pellet operations to support 20-30% of its generation needs and believes that these acquisitions would help meet its target.

Texas Pellets and German Pellets Texas, along with Louisiana Pellets and German Pellets Louisiana are currently going through the Chapter 11 bankruptcy processes in the US and are seeking buyers for all of their assets.

Texas Pellets, the owner and developer of a wood biomass pellet manufacturing facility, has gross assets of $301.5m, including operating and nonoperating assets, at the end of 2016. While Louisiana Pellets, also the owner of a wood biomass pellet manufacturing facility, had gross assets of $504.7m at the end of last year.

More news

10:27 JPMorgan upgrades Carillion, Kier is top pick, Interserve 'attractive'

Taking a look at the UK construction services sector, JP Morgan Cazenove upgraded Carillon to 'overweight' and said Kier Group remained its top pick for quality.

09:48 London open: Stocks flat as investors pause for breath

London stocks were little changed in early trade as investors paused for breath following strong gains in the previous session, when sentiment was underpinned by hopes that centrist Emmanuel Macron will win France's presidential elections.

09:18 WS Atkins shares keep rising after activist Elliott confirms stake

The takeover of WS Atkins by Canadian rival may not be signed sealed and delivered quite yet, as US activist hedge fund Elliott Advisors has scooped up a 6.8% stake in the London-listed engineering consultant .

08:56 Stagecoach, Virgin and SNCF team up for west coast partnership rail franchise bid

Transport operators Stagecoach and Virgin Group have teamed up with French high speed operator SNCF to bid for the UK's West Coast rail franchise.

09:33 Whitbread warns of tough consumer outlook

Whitbread delivered a mixed set of full year results and while it reported a good start to 2017, warned of a tougher consumer environment than last year for its Premier Inn hotels and Costs coffee shops.

08:19 Tuesday newspaper round-up: Customs bill, banks, WS Atkins, business rates

Britain will have to settle a demand for €2 billion over its failure to tackle customs fraud before it can agree a post-Brexit trade deal with the EU, senior Brussels sources have said. European officials believe that HM Revenue & Customs is failing to curb Chinese crime gangs that systematically undervalue goods imported into the EU through Dover and Felixstowe, avoiding billions of pounds in customs duty and VAT. - The Times

07:49 Tuesday preview: Whitbread, BHP and public sector borrowing in focus

UK public sector debt figures follow a smattering of corporate results first thing in the morning from the likes of Whitbread, BHP Billiton and St James's Place.

24 Apr US close: Markets rally as Macron takes pole position

US equity markets were in the green on Monday over investor relief on centrist Emmanuel Macron winning the first round in the French presidential election and on hopes of possible tax reform.

24 Apr French vote to keep European Union and euro alive (for now)

France voted to keep the euro alive at the weekend but the overall results laid bare an increasingly fragmented political landscape, leading some to question whether the winner, centrist Emmanuel Macron, will really be able to effect positive change - more importantly, whether the French truly want it.

24 Apr Directors dealings: Bovis Homes's new chief builds for the future

Housebuilder Bovis´ new boss, Greg Fitzgerald, and his spouse picked up a large batch of shares in the company he now calls home.