The land of the ‘free’ moves on private equity

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Texas energy company TXU was subject to a $45 billion private equity buy out this week. Now Texas, home (surely) to more libertarians than most places on earth is moving to stop the bid, led by a Republican (you read that right) Senator. As The Australian notes in an FT inspired report:

THE first signs of political opposition to energy supplier TXU's $US45 billion ($57billion) buyout by private equity firms emerged as state senators in Texas moved to force the buyers to have the deal approved locally. In a 9-0 vote, a Texas senate committee pushed forward legislation to grant broader authority to the state's utilities regulator on mergers and acquisitions.

If the bill, which is being championed by Troy Fraser, a senior Republican, becomes law, it could be an obstacle to TXU's hopes of rapidly closing the deal.

Texas sees the harm of private equity to a local economy. The UK is subsidising that harm. For once, I'll suggest we follow the Republican lead.