New Zealand-based electricity generation company Mercury NZ and Powering Australian Renewables (PowaAR), an Australian infrastructure investment fund, have acquired Tilt Renewables ‘ operations in their respective countries.

The two companies agreed to acquire the assets for NZ$2.96bn ($2.09bn), having reached a scheme implementation agreement for the acquisitions in March.

The offer was made after Infratil, which holds a 65.5% stake in Tilt Renewables, started a strategic review process to assess its shareholdings in the company.

Mercury NZ will now take ownership of five operating wind farms in New Zealand, namely Tararua I, II and III, Mahinerangi and Waipipi.

The company will also have the opportunity to develop wind farms in other regions, including Manawatu, Northland, Otago and Southland.

Mercury NZ chief executive Vince Hawksworth said: “The purchase of five operating wind farms from Tilt Renewables means that Mercury will become one of New Zealand’s largest wind power companies.”

Mr Hawksworth said that the acquisition will add 1,100GWh to Mercury NZ’s annual power generation capacity.

The deal is expected to complement the company’s existing portfolio, which includes both hydro and geothermal assets.

PowAR claims the acquisition will position it as Australia’s largest owner and operator of wind and solar generation, bringing the company’s installed capacity to 1,313MW and its development pipeline to more than 3,500MW.

PowAR chair Cheryl Bart said: “This exciting transaction is absolutely aligned to our mission of leading the transition to a decarbonised, decentralised and digitised energy system [that] will deliver all Australians clean, reliable and affordable power.

“Tilt has built a world-class portfolio of high-quality renewable energy assets and development opportunities that will complement our existing assets and ensure we continue to drive investment in renewable energy as a pathway to Australia’s clean energy future.”

PowAR is a partnership between the QIC Global Infrastructure Fund and its co-investors, which include Aware Super, Hostplus, TelstraSuper, MLC, LGIASuper, the Future Fund and AGL Energy.