Brookfield Consortium Raises Offer, Seeks Control of Origin Energy

A Brookfield led group submitted a revised takeover proposal for Origin Energy on November 23, elevating the offer to about A$16.4 billion, roughly US$10.6 billion. Origin acknowledged receipt of the proposal and delayed a shareholder meeting that had been set for November 23 so that the new bid could be considered. The company said the offer came after early proxy returns showed the original proposal would not have secured the required support.

Origin had been facing a contest over control of a business that combines electricity and gas retailing with a developing renewables portfolio. The new offer follows pressure from major shareholders, most prominently AustralianSuper, which had earlier signalled opposition to the initial bid on the grounds that it undervalued Origin’s long term prospects as Australia shifts to cleaner power sources. AustralianSuper is Origin’s largest shareholder and its stance has influential weight given the 75 percent shareholder approval threshold for the transaction to succeed.

Origin’s board recommended shareholders vote in favour of the revised proposal in the absence of a superior offer, indicating that directors view the sweetened terms as sufficiently compelling to warrant support unless a better proposal emerges. Market responses have been mixed. Origin shares were volatile on the news as investors weighed the likelihood of final approval against strategic implications for the company and the broader market. Analysts noted that the voting power of large institutional investors and turnout dynamics will be decisive for achieving the supermajority required.

The bid arrives against a backdrop of heightened government attention to energy market stability and reform. Policymakers in Canberra and regulators have been moving to address supply reliability and to accelerate investment in low carbon capacity, increasing the strategic value of companies that combine customer retailing with generation and storage assets. Origin’s portfolio, which includes retail customers across Australia as well as renewable development projects, makes it attractive to buyers seeking scale in the transition economy.

If the deal goes through, it would mark a significant consolidation in Australia’s energy sector and could affect competition in retail supply and pace of investment in renewables. For Brookfield and its partners, acquiring Origin would provide an entry point to a large customer base and generation pipeline at a time when private capital is actively seeking energy transition opportunities globally.

Shareholder deliberations are now expected to continue as the revised proposal is evaluated. The outcome will hinge on whether institutional investors view the enhanced price as adequate relative to Origin’s future growth from renewables and retail margins, and whether any rival bids materialise. The decision will carry implications for investor returns, consumer prices and the speed at which Australia’s power system is decarbonised.