Origin completes acquisition of Eraring Energy

Origin Energy Limited has completed the acquisition of Eraring Energy.

On July 1, 2013, Origin announced it had executed a Sale and Purchase Agreement with the New South Wales Government to acquire Eraring Energy for a net payment of $50 million and agreed the terms for cancellation of the Cobbora Coal Supply Agreement including a payment to Origin of $300 million.

In addition, Origin announced it had entered into a coal supply agreement with Centennial Coal for the provision of 24.5 million tonnes of coal over an eight-year period from FY 2015 for use at Eraring Power Station.

As a result of the successful completion of the Eraring Energy acquisition, the cancellation of rights under the Cobbora arrangements has been completed and the agreement with Centennial Coal is now confirmed, with supply due to commence from FY 2015.

Origin chief executive officer Energy Markets Frank Calabria said the acquisition of Eraring Energy enables the company to continue to provide a secure, reliable and affordable supply of energy to millions of Australians.

“Origin and Eraring Energy have worked closely together during the past month to achieve a seamless transition to the new ownership arrangements and I am pleased with the high level of co-operation between our two companies,” Mr Calabria said,

“I would like to extend a warm welcome to Eraring Energy’s employees and contractors who join our company today and look forward to their contribution to Origin’s future success.”