CA - Brookfield partners to buy Australia's Origin Energy in $12.4B deal

2023-03-27 07:11:36 ET

A consortium led by Brookfield Renewable Partners ( NYSE: BEP ) said Monday it agreed to acquire Australian utility Origin Energy ( OTCPK:OGFGF ) in a A$18.7B (~US$12.4B) deal including debt.

Upon closing of the deal, Brookfield ( BEP ) and its institutional partners will own Origin's ( OTCPK:OGFGF ) Energy Markets business, which will be Australia's largest integrated power generator and energy retailer.

MidOcean Energy, a liquefied natural gas company formed by EIG Global Energy Partners and one of the groups in the consortium, will separately own Origin's Integrated Gas segment including its upstream gas interests and a 27.5% stake in Australia Pacific LNG.

The business plan for Origin Energy Markets contemplates at least $20B of additional investment during the next decade to construct up to 14 GW of new renewable generation and storage facilities in Australia.

For Brookfield ( BEP ), adding Origin will add further exposure to the shift away from fossil fuels in Australia , where utilities are accelerating plans to close coal plants and expand in renewables.

Brookfield Renewable Partners ( BEP ) is a "fast-growing renewables pure play," David Ksir writes in an analysis published recently on Seeking Alpha .

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