Texaco Subsidiary to Be Sold

West Germany’s largest utility company, Rheinische-Westfaelisches Elektrizitaetswerg AG, has agreed to buy Texaco Inc.’s German subsidiary for $1.23 billion, an RWE spokesman said today.

RWE and Texaco International Financial Corp. signed the purchase agreement in Luxembourg earlier in the day, the spokesman said. The sale of Deutsche Texaco AG comes as the first major step in Texaco’s plan to shed $5 billion worth of assets as part of a restructuring plan following its emergence from Chapter 11 Bankruptcy Court protection in April.