Shell Energy Australia, a subsidiary of Royal Dutch Shell plc, has today entered into a Scheme Implementation Deed to acquire 100% of the shares in ERM Power, a leading commercial and industrial electricity retailer in Australia, for $AUD 617 million less dividend adjustments payable by ERM.
In the space of just 10 years since ERM entered the commercial and industrial electricity market, the company has grown to become the second-largest energy retailer by load in Australia. The company is also an electricity generator, owning and operating two gas-fired generation plants. The gas-fired generation will play an important role in Australia’s transition to renewables.
“This acquisition aligns with Shell’s global ambition to expand our integrated power business and builds on Shell Energy Australia’s existing gas marketing and trading capability,” Shell Australia’s Country Chair Zoe Yujnovich said.
“ERM will become our core power and energy solutions platform and this acquisition is a significant step forward in growing Shell’s integrated power business in Australia. Upon completion, we look forward to welcoming ERM’s staff and customers to Shell,” she said.
The acquisition has received Foreign Investment Review Board and Australian Competition and Consumer Commission approvals and Shell’s offer is subject to court approval as well as ERM shareholder approval.
The acquisition is expected to be completed before the end of 2019.