ACCC waves through $18.7b Origin Energy takeover

afr.com:

The Australian Competition and Consumer Commission (ACCC) on Tuesday approved Origin Energy’s $18.7 billion takeover by Canada’s Brookfield and its US-based partner, EIG, opening a debate about shareholder value in the megadeal.

The ACCC announcement clears another hurdle in the giant Toronto-based asset manager’s plan to invest $20 billion in clean energy and storage in Australia, which it argues will help the energy transition.

ACCC chairwoman Gina Cass-Gottlieb said the regulator believed the public benefits of the deal would outweigh negatives. Elke Meitzel

The ACCC said it can only clear a deal if it is satisfied the proposed acquisition would not likely substantially lessen competition, or that the likely public benefits would outweigh the detriments.

“On the first limb of the test, we are not satisfied that the proposed acquisition would not be likely to substantially lessen competition,” ACCC chairwoman Gina Cass-Gottlieb said. “However, after a detailed review, we are satisfied that the proposed acquisition is likely to result in public benefits that would outweigh the likely public detriments.”

Origin said the decision marks “an important milestone” in progress towards a deal.

It said it “is well advanced in the process of preparing the information shareholders need to make an informed decision and have their say on the proposed transaction, including the scheme booklet (and an independent expert’s report) to be sent to shareholders”.

Under the takeover proposal, which was firmed up in March, Brookfield will take Origin’s energy markets business, including its power generation and retailing business, while EIG’s MidOcean Energy will take its stake in the huge Australia Pacific LNG venture in Queensland.

Brookfi