Australia authorises Brookfield consortium to take over Origin Energy

The Australian Competition and Consumer Commission (ACCC) has granted authorisation with conditions for the proposed acquisition of Origin Energy by Brookfield and MidOcean. The acquisition involves two interdependent transactions. Brookfield's consortium will acquire Origin's energy markets business, including power generation and electricity and gas retail businesses (4.5 million customers and 7,800 MW of owned and contracted generation accounting for 13% of the National Electricity Market’s electricity generation capacity), while MidOcean will take ownership of Origin's upstream gas interests, including a 27.5% stake in the 9 Mt/year Australia Pacific LNG (APLNG) liquefaction plant on Curtis Island. Brookfield is a global asset manager with a focus on renewable energy, while MidOcean is an LNG company formed by EIG, an institutional investor in energy and infrastructure. The deal is expected to close by early 2024.

The ACCC determined that while the acquisition may not be entirely without competition concerns, the likely public benefits, particularly in accelerating the roll-out of renewable energy generation and reducing greenhouse gas emissions, outweigh the likely detriments. The key competition concern arises from vertical integration in the electricity supply chain in Victoria, as Brookfield will control AusNet, which owns energy network infrastructure in the state. The ACCC is concerned about the potential for discrimination against rival generators and the potential to favour Origin's operations, which could reduce competition.