Shell has launched a AUD617m ($416m) takeover bid for Australia’s second-biggest business and industry energy supplier, ERM Power, to gain a quarter of the country’s commercial and industrial market. ERM has agreed to the offer, with the main shareholder saying he will accept if no higher bid is made. The deal would give Shell’s Australian operations control over more than half of all electricity generation in Australia. Shell said the deal was part of a strategy to expand its integrated power operations, on which spending will increase to between $2bn and $3bn by 2025.
Shell has launched a AUD617m ($416m) takeover bid for Australia’s second-biggest business and industry energy supplier, ERM Power, to gain a quarter of the country’s commercial and industrial market. ERM has agreed to the offer, with the main shareholder saying he will accept if no higher bid is made. A full shareholder vote is expected to take place in November. Shell said the deal was part of a strategy to expand its integrated power operations, on which spending will increase to between $2bn and $3bn by 2025.