New Zealand electricity generator and retailer Mercury has announced that it has entered into binding agreements to acquire rival Trustpower’s retail business for NZD441 million (USD306 million) in cash. The transaction is conditional on several issues, including Commerce Commission clearance, completion of the proposed restructure of Tauranga Energy Consumer Trust and Trustpower shareholder approval.
Trustpower’s retail business provides electricity, gas, fixed and wireless broadband and mobile phone services to approximately 231,000 customers nationwide, including 112,000 telecommunications connections. Mercury claims the combined business will have around 780,000 connections across both energy and telco services.
Commenting on the deal, Mercury CEO Vince Hawksworth highlighted the acquisition would accelerate Mercury’s retail strategy, which is centred on delivering the right product mix and value for customers. ‘Mercury and Trustpower are two highly complementary organisations, and this agreement would see the best of both being brought together for our customers’, he said, adding: ‘We know customers value the convenience and ease of bundled services in their home and Trustpower has deep expertise in bundling products in a way that people clearly appreciate.’