Oil company Shell has joined Infrastructure Capital Group (ICG) in a $729 million deal to purchase the Australian assets of New Zealand company Meridian Energy.
Shell will become the owner of online energy retail business, Powershop Australia, while ICG will take ownership of the infrastructure assets including the Mt Mercer and Mt Millar wind farms, and Hume, Burrinjuck and Keepit hydro power stations.
Powershop Australia currently serves over 185,000 customers and Elisabeth Brinton, Shell’s Vice President of Renewables and Energy Solutions, said the acquisition broadens its customer portfolio in Australia to include households.
“Shell’s presence across the entirety of our changing energy system means we are well-placed to manage complexity for customers so that we deliver simple, cleaner energy solutions.”
Neil Barclay, Meridian Chief Executive said the sale is a testament to the quality of the Meridian Energy Australia business and the employees who have been dedicated to its success.
“With emissions the problem, and renewable energy the solution, the buyers are readying to invest heavily in a cleaner future. The Meridian Australia team will be at the heart of a transformation that is not only good for Australia, but also the planet.”
Tony Nunan, Shell Australia chairman, said the acquisition is another example of how the company is growing its footprint in Australia to meet customers evolving needs through the energy transition.
“Powershop today offers innovative energy packages, and customers will benefit in the future from access to Shell’s broader suite of energy solutions linked to e-mobility and battery storage.” The $729 million price is subject to possible adjustment depending on the timing of competition, which is expected in the first quarter of 2022.