Shell teams with ICG to buy Meridian’s Australian assets in $729m deal

25 November 2021
Shell teams with ICG to buy Meridian’s Australian assets in $729m deal

Global oil and gas giant Shell announced on Monday it had teamed with Australian investment manager Infrastructure Capital Group (ICG) to take over energy retailer Powershop via a total acquisition of its parent company, Meridian Energy Australia (MEA), a subsidiary of New Zealand-based company Meridian Energy.

When the transaction is completed, the consortium will separate MEA, with Shell taking ownership of the energy retail business Powershop Australia, which currently provides electricity to 185,000 customers across New South Wales (NSW), Victoria, South Australia, and the south-east corner of Queensland.

ICG will become owner of MEA’s portfolio of renewable energy generation assets, including the Burrinjuck and Keepit hydro power stations in NSW, the 131 MW Mount Mercer Wind Farm in Victoria and the 70 MW Mount Millar Wind Farm in South Australia, and development projects including the 20 MW/40 MWh Hume battery energy storage system (BESS) set to be installed alongside the 200 GWh Hume Hydroelectric Power Station in regional NSW.

As part of the transaction, Shell has agreed to acquire all output from the wind and hydro assets under purchase agreements (PPAs).