Prior to the acquisition SingPower already controlled SPI Powernet, the high voltage network that services both generators and distributors in Victoria.

TXU Australia owns the Western Underground gas storage facility, the Torrens Island Power Station in South Australia and a third of the SEAGas pipeline.

Talk has already arisen of possible Australian Competition and Consumer Commission intervention in the sale, although the ACCC is yet to comment officially.

The ACCC previously foiled SingPower’s attempts to purchase electricity distributor and retailer Citipower in 2002, only giving approval for the acquisition of the company’s distribution assets, the poles and wires.

If pushed into a sale of some of its assets to create room for the purchase of TXU it is thought that the Singaporean player could make a tidy profit from Powernet, which it purchased in 2000 for $2.1 billion, but is now valued at $2.5 billion.

However the company has already announced intentions of increasing its presence in Australia with executive director Quek Poh Huat saying that it is only waiting for other states to follow Victoria's privatisation lead.

"We believe that the Australian energy market has growth potential," Quek Poh Huat said in a statement.

"The Australian market is attractive with its stable and transparent regulatory environment."

"With this new investment, SP will become one of the largest utility groups in Australia," the company said.

Analysts had estimated the value of the TXU unit to be between $4.1 billion and $4.7 billion. The $5.1 billion price-tag includes $2.9 billion of debt.

Late last year TXU’s Texan parent company had planned to float the Australian unit, which had been one of the best-performing divisions in the TXU stable.

However TXU opted for a trade sale because of the good price offered by Singapore Power, which had trumped a previous offer from the Hong Kong based CLP.