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- The ACCC grants conditional approval for the proposed acquisition of Origin Energy (ASX:ORG) by Brookfield and MidOcean
- The acquisition involves two interdependent transactions. Brookfield assumes control of Origin’s energy markets division, including electricity generation and retail operations, while MidOcean takes ownership of Origin’s upstream gas interests
- The ACCC believes it will expedite the deployment of renewable energy, contributing to a faster reduction in Australia’s greenhouse gas emissions
- ORG shares are up almost five per cent, trading at $9.12 at 12:51 pm AEDT
The ACCC has granted conditional approval for the proposed acquisition of Origin Energy (ASX:ORG) by Brookfield and MidOcean.
The acquisition involves two interdependent transactions. Brookfield will assume control of Origin’s energy markets division, including electricity generation and retail operations, while MidOcean will take ownership of Origin’s upstream gas interests.
The ACCC’s evaluation under the Competition and Consumer Act requires it to ensure that the acquisition doesn’t significantly lessen competition or that its public benefits outweigh public detriments.
The ACCC believes it will expedite the deployment of renewable energy, contributing to a faster reduction in Australia’s greenhouse gas emissions.
“The Brookfield Global Transition Fund has been specifically established to focus on the transition to renewable energy. Its decision to buy Origin, Australia’s fourth largest emitter of greenhouse gases, is driven by a strong imperative and commercial incentive to lower emissions quickly,” ACCC Chair Gina Cass-Gottlieb said.
“In this case, we determined that the likely gains for Australia’s renewable energy transition amount to a public benefit sufficient to outweigh the likely public detriments.”
However, the ACCC recognised the potential uncertainties around this acquisition. These include limitations in the electricity transmission network and the possibility that other renewable investments could occur independently of the acquisition.
“Ultimately the ACCC decided that while some of these other issues raised competitive risks, the impacts are less significant,” Ms Cass-Gottlieb said.
ORG shares were up almost five per cent, trading at $9.12 at 12:51 pm AEDT.
