The fate of Loy Yang A Power Station in Victoria is closer to being known, with the Federal Court shortly to rule on whether the Australian Gas Light Company's (AGL) interest in the A$3.5bn Great Energy Alliance Corporation (GEAC) bid for the power station is anti-competitive.

Justice French is expected to hand down his decision this month on whether AGL's purchase of a 35% interest in GEAC's acquisition of Loy Yang is in breach of the Trade Practices Act. The hearing began in Melbourne on 18 November after the Federal Court rejected the Australian Competition and Consumer Commission's (ACCC) submission that the court had no jurisdiction in the matter.

The GEAC consortium comprises AGL, Tokyo Electric Power Company Incorporated (TEPCO) and an investor group led by the Commonwealth Bank of Australia (CBA).

AGL's general manager legal, Brian Smith, was unavailable for comment, but a spokesperson said the company was committed to finalising the matter before Christmas. An exclusivity arrangement between AGL and Loy Yang's owners - a consortium of Macquarie Bank's Horizon Energy Investment Fund, CMS Energy and NRG Energy -expires mid-December.

Gilbert + Tobin partner Gary Lawler, who is advising AGL, declined to comment on the proceedings, but indicated they would conclude before the end of the year.

The ACCC rejected the AGL-led bid in September following seven months of negotiation, claiming it created "substantial competition concerns". Managing director Greg Martin said AGL commenced court proceedings having "exhausted all options through the informal clearance process to reach a commercially acceptable outcome".

Freehills is advising GEAC and Baker & McKenzie is acting for TEPCO. Allens Arthur Robinson is representing the vendors.