Investors are buckling in for a drawn-out approvals process for the takeover by Brookfield and EIG, keeping the share price lower the offer.
Investors in Origin Energy are buckling in for a drawn-out approvals process for the $18.7 billion takeover of the major power and gas supplier that is expected to keep the share price much lower than the offer price for several months to come.of a binding agreement for North American bidders Brookfield Asset Management and EIG Partners to buy Origin at a price equivalent to $8.912 a share that is being provisionally supported by the board.
But investors have refocused on the hurdles of regulatory approvals, most significantly the Australian Competition and Consumer Commission.investors and analysts are more wary, citing issues arising from the combination of Origin’s power plant and retail assets with Brookfield’s AusNet interests in electricity networks in Victoria.
Foreign Investment Review Board approval has also to be secured, and while Brookfield and EIG are regarded as having good credentials, investors point to the sensitivity of energy prices and energy security, heightened by the transition ahead to low-carbon energy and public acceptance of foreign ownership of critical assets.
“Utilities are typically only allowed to own either generation and retail assets or transmission and distribution networks,” they told clients. Still, Mr Upson said on Tuesday Brookfield saw no material competition challenges with the deal, given the assets would be held in separate, independent vehicles with different partners, and AusNet’s operations are strictly regulated.
Philippines Latest News, Philippines Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Private equity plugs $4.5b gap in Brookfield-Origin dealSeven international banks have committed bridge financing for the private equity firm’s split $18.2b purchase with Canada’s Brookfield Asset Management.
Read more »
Middle man: Keaon hopes versatility gives him Origin edgeKeaon Koloamatangi hopes his versatility can help him secure a Blues jersey for this year’s State of Origin after putting his hand up to help the Rabbitohs overcome a middle-forward crisis.
Read more »
Origin Energy grew five times bigger than ex-parent BoralTony Berg, a former CEO of Boral who pulled the trigger on a de-merger of Origin Energy 23 years ago, says it was a smart strategy.
Read more »
Why 'committed' Suaalii should still be considered for Origin: RobinsonTrent Robinson has ruled out the possibility of an early release for Joseph Suaalii and urged NSW to consider the Wallabies-bound star for Origin.
Read more »
Investors feast on trophy restaurants, 7-Elevens and fast foodA new Japanese restaurant and bar leased to hospitality veteran Paul Schulte and ex-Nobu chef Adam Bourke sold almost $1 million above its previous selling price.
Read more »
The tax fears leading some SMSF investors to dump propertyAnalysis shows DIY super funds are still likely to pay less tax despite concerns about the proposed levy on unrealised capital gains.
Read more »