Brookfield and EIG-led group to acquire Australia’s Origin Energy

• With the deal’s close, Brookfield and its partners will own Origin’s energy markets business, Australia’s largest integrated power generator and energy retailer
• EIG’s MidOcean will separately own Origin’s integrated gas segment, including its upstream gas interests and the 27.5 percent stake in Australia Pacific LNG
• MidOcean has also agreed to on-sell a 2.49 percent stake in APLNG to ConocoPhillips

A consortium that includes Brookfield Asset Management and MidOcean Energy, the global LNG platform of EIG, have agreed to acquire Origin Energy, a Sydney, Australia-based energy generator and retailer.

The deal values Origin at an enterprise value of A$18.7 billion.

With the deal’s close, Brookfield, its institutional partners and investors will own Origin’s energy markets business, Australia’s largest integrated power generator and energy retailer.

EIG’s MidOcean will separately own Origin’s integrated gas segment, including its upstream gas interests and the 27.5 percent stake in Australia Pacific LNG.

MidOcean has also agreed to on-sell a 2.49 percent stake in APLNG to ConocoPhillips.
ConocoPhillips, already a minority owner in APLNG, is the current downstream operator and intends to take over upstream operatorship of APLNG.

The proposed investment in new-build renewables for Origin Energy Markets would represent approximately one-fifth of the new utility-scale renewable capacity identified by the Australian Energy Market Operator that is required to be developed across the National Electricity Market through to 2030.

MidOcean Energy CEO De la Rey Venter said, in a statement, “We’re thrilled to join forces with Brookfield and Origin in this transaction and to further expand our footprint in Australia. Origin’s Integrated Gas business adds world-class assets to our portfolio – assets that fit our strategy to create a high quality, diversified, global ‘pure play’ integrated LNG company. We look forward to working with all stakeholders to help facilitate Australia’s energy transition, to bring stable and affordable gas supply to the domestic market and to provide a reliable supply of LNG to the region for decades to come.”

Brookfield Renewable, an affiliate of Toronto-based Brookfield Asset Management, is an operator of a decarbonization technologies platform. It has about $800 billion of assets under management.

Based in the Washington, DC, EIG invests in the energy and infrastructure sector. It had $22.7 billion under management as of December 31, 2022. MidOcean is an LNG company formed and managed by EIG to build a carbon-competitive LNG portfolio.

Citi and MUFG acted as financial advisors to Brookfield on the deal while UBS and JP Morgan acted as financial advisors to MidOcean.