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Brookfield & EIG consortium → Origin Energy

withdrawn
Deal announced2023-11-01
BuyerBrookfield & EIG consortium
SellerOrigin Energy
SectorEnergy
ValueA$18.7B
Deal typePE

Brookfield and EIG offered roughly $20bn (A$9.39/share) for Origin Energy, split so Brookfield Renewable would take Origin's power generation and retail business and EIG would take its integrated gas division. Origin's board recommended the offer, but shareholders voted it down in November 2023 and the deal was withdrawn.

Why the buyer wanted it

Brookfield wanted Origin's 24% retail market share and existing generation fleet as a platform to fund and offtake a planned $20-30bn buildout of about 14GW of new wind, solar, and storage capacity in Australia — buying an incumbent retailer was a faster route to scale than building a renewables business from scratch.

Why the seller agreed

The board recommended the offer, but only 69% of shareholders voted in favour versus the 75% required. AustralianSuper, Origin's largest shareholder at 17.5%, led the opposition, arguing Origin's future upside from the energy transition was worth more to existing shareholders than the takeover price on offer.

Stock reaction

Origin Energy shares fell 3.9% to A$7.86 on the day trading was halted ahead of the rejected shareholder vote in November 2023.

Analyst / market commentary

Proxy advisers were split — CGI Glass Lewis backed the offer, but AustralianSuper and other holders argued the price failed to capture Origin's energy-transition upside, which proved decisive in the vote.

Deal mechanics

Buyer's advisors

Citi and MUFG advised Brookfield; UBS and J.P. Morgan advised EIG's MidOcean Energy vehicle

Seller's advisors

Herbert Smith Freehills (legal) and Barrenjoey Capital (financial) advised Origin Energy

Deal structure

Scheme of arrangement, all-cash at A$9.39/share, split so Brookfield Renewable took the energy markets (generation and retail) business and EIG's MidOcean Energy took the integrated gas division

Valuation multiple

Not publicly disclosed

Regulatory approval

Required FIRB approval and ACCC merger authorisation; the consortium formally lodged its ACCC application

Financing source

Brookfield backed by institutional co-investors GIC and Temasek; EIG's stake held through its MidOcean Energy vehicle

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