AGL confirms merger approach to Origin
AGL Energy has confirmed it has made a preliminary merger approach to Origin Energy concerning the possibility of a nil premium scrip merger between the entities to form an integrated energy major.
AGL Energy's Managing Director Paul Anthony said: "For some months we have been assessing and analysing the business benefits in putting the two entities together. “This analysis has shown there to be a compelling case to merge due to the complementary business profiles of each entity. Combining the two businesses would unlock significant economic and financial benefits. “It would advance the monetisation of Origin's gas reserves, reduce the requirement for AGL to acquire gas reserves and allow for a significant reduction in duplicated operating costs. These aspects are uniquely achievable in a combination of AGL and Origin,” he said. “We have been giving considerable thought to addressing matters relevant to the ACCC and are working on proposals that are designed to provide acceptable solutions to the Commission,” Mr Anthony added.