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Acquistions
3 Months Ended
Sep. 30, 2011
ACQUISTIONS

17. ACQUISITIONS

In the second quarter of 2011, the Company finalized the purchase price allocation related to the acquisition of Ballylumford. There were no significant adjustments made to the preliminary purchase price allocation recorded in the third quarter of 2010 when the acquisition was completed.

On April 20, 2011, the Company announced the execution of a definitive agreement (the “Merger Agreement”) with DPL, the parent company of Dayton Power & Light Company, a utility company based in Ohio. Under the terms of the Merger Agreement, AES agreed to acquire DPL for an enterprise value of $4.7 billion, consisting of cash of $3.5 billion and the assumption of net debt of approximately $1.2 billion. Through its operating subsidiaries DP&L and DPL Energy Resources, DPL serves over 500,000 customers in West Central Ohio. Additionally, DPL operates over 3,800 MW of power generation facilities and provides competitive retail energy services to industrial and commercial customers. Upon closing of the transaction, DPL will become a wholly-owned subsidiary of AES.

The consummation of the transaction is subject to approval of the Public Utilities Commission of Ohio and FERC. By September 30, 2011, the transaction had been approved by DPL shareholders and had satisfied the antitrust review under the Hart-Scott-Rodino Act. Remaining approvals are expected to be obtained during the fourth quarter of 2011 or the first quarter of 2012, although there can be no assurance that such approvals will be obtained, or that they will be obtained on reasonable terms. The transaction is also subject to certain other closing conditions. After the announcement of the transaction, certain lawsuits were filed seeking to enjoin the merger and/or seek unspecified monetary damages, some of which name AES as a defendant. The Company believes it has meritorious defenses to the lawsuits and will assert them vigorously; however, there can be no assurances that it will be successful in its efforts.