Singapore-based company Sembcorp Industries has agreed to acquire Australia’s integrated energy provider Alinta Energy to grow its global renewables capacity and strengthen its footprint in the Australian energy market.
Under a share sale agreement with Hong Kong-based Chow Tai Fook Enterprises (CTFE), Sembcorp will acquire 100% of Alinta Energy at an enterprise value of A$6.5bn ($4.32bn).
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Alinta operates a portfolio with 3.4GW of installed and contracted generation capacity across coal, gas, wind, and solar. It supplies electricity and gas to nearly 1.1 million customers nationwide.
Wholly owned by CTFE since 2017, Alinta is regarded as one of leading Australian energy retailers and generators.
The deal brings together Alinta’s local market expertise with Sembcorp’s global renewables capability, giving Sembcorp an established platform to speed up clean energy growth in Australia.
Sembcorp will execute the acquisition via its Australian subsidiaries by purchasing operating entities Pioneer Sail and Latrobe Valley Power, though the ownership structure was not detailed.
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By GlobalDataAlinta operates a portfolio of efficient generation assets, with a dispatchable portfolio availability of 93%.
The company also has a 10.4GW pipeline of renewables and firming projects, supporting Australia’s aim for energy transition and security.
Sembcorp has invested over A$5.9bn in renewable projects worldwide and targets 25GW of renewable capacity by 2028, with Australia as a key market.
The company said that it will continue backing Alinta’s strategy to deliver affordable and reliable power supply and advance a balanced and responsible energy transition.
Sembcorp Renewables East president and CEO Alex Tan said: “Australia is a well-established and forward-looking energy market, and this acquisition strengthens our presence in a key developed market while providing a scalable platform for Sembcorp to accelerate renewables and low-carbon growth.
“By combining Sembcorp’s global renewables expertise and access to capital with Alinta’s strong local workforce and project pipeline, we believe we can contribute meaningfully to Australia’s decarbonisation goals and support long-term employment opportunities in local communities.
“We remain committed to operating responsibly and sustainably, working closely with government, communities, and Alinta’s experienced management team to deliver a transition that meets national and stakeholder needs.”
Furthermore, CTFE has invested more than A$1.1bn to build a digital platform for Australian customers, upgrade its generation fleet for further flexibility and reliability, and develop a 10.4GW pipeline of renewables and firming projects.
In October, Sembcorp agreed to acquire ReNew Sun Bright, the solar energy unit of ReNew Energy Global, for approximately S$246m.
