The $18.7 billion deal by the North American pair to buy Origin is “a great outcome” for shareholders, customers and employees, Origin CEO Frank Calabria said.
Canadian giant Brookfield has pledged to invest billions of dollars to accelerate the decarbonisation of Origin Energy after sealing a $18.7 billion deal to buy out the Australian electricity and gas supplier together with US partner EIG., has been fully endorsed by the board of the target, with Origin chief executive Frank Calabria describing it as a “great outcome” for shareholders, customers, employees and partners.
That compares with Origin’s closing share price on Monday of $8.17, and $5.81 on November 9, the day before the takeover proposal was unveiled.While completion of a takeover is still subject to shareholder and regulatory approvals, the binding agreement puts to bed any lingering doubts in the market that what was the second-biggest takeover proposal announced in 2022 in Australia would be derailed by the federal government’s intervention into energy markets to rein in runaway prices.
Mark Carney, the former Bank of England governor who chairs Brookfield Asset Management and is head of its transition investing said the firm was determined that the new energy markets business of Origin would lead the way in respect to deploying large-scale renewable energy and retiring coal power. For EIG, the deal will represent a big step-up in its presence in the Australian LNG market which it has sought to enter on several occasions and is currently limited to small stakesEIG chief executive Blair Thomas underscored the firm’s view that LNG will be critical to delivering the energy transition, and described the deal as “a compelling opportunity to accelerate EIG’s strategy of gaining exposure to high-quality LNG assets around theAustralia since 2000, and look forward to playing a...
The transaction is also subject to approval from the Foreign Investment Review Board, and to a vote by Origin shareholders, as well as to the findings of an independent expert’s report.
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