ORG origin energy limited

What is taking FIRB approval so long?

  1. 221 Posts.
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    There hasn't been much talk about it but surely this is still a risk for FIRB approval on competition grounds?

    Particularly at the same time that the government is holding a consultation on merger reform due to concerns about increased market concentration, reduction in competition and declining productivity.

    The ACCC said it did not think this acquisition passed its competition test. But that because there was a potential benefit to faster renewables rollout that the benefit of renewables outweighed the cost of lower competition.

    The federal government has now accelerated the roll out of renewables through its underwriting scheme. This has to reduce any benefit of Brookfield's potential investments potentially accelerating the renewable rollout.

    Can the government approve this if it also comes to the same conclusion that the transaction:

    a) fails a competition test and
    b) the government (i.e. taxpayers) has now underwritten accelerated renewable roll out which seems to take away the potential benefit of Brookfield ownership?



 
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