Infrastructure Capital Group (ICG) and international energy major Shell are buying the Australian business of New Zealand’s Meridian Energy in a A$729m (€469m) deal.

Under the terms of the agreement, Australian manager ICG will become the owner of Meridian’s infrastructure assets in the Mt Mercer and Mt Millar wind farms, in Victoria and South Australia respectively, and the Hume, Burrinjuck and Keepit hydropower stations in NSW. ICG will also pick up Meridian’s infrastructure development assets.

Shell’s energy operations arm will become the owner of the retail business, Powershop Australia.

Tom Laidlaw, managing director of ICG, said: “Not only does this significantly scale our renewables portfolio but the addition of hydro comes at an important stage as we look to diversify with well-established, well-located assets.

“The proposed Hume hydro BESS presents a unique opportunity to develop what will be a meaningful milestone for renewables in Australia and something we hope to replicate elsewhere.”

Shell Australia chairman Tony Nunan said Powershop will form Shell’s residential power platform in Australia, extending Shell’s existing position as Australia’s largest dedicated retailer of electricity to commercial and industrial customers.

“This acquisition is another example of how we are continuing to grow our footprint in Australia to meet customers’ evolving needs through the energy transition.”

Meridian’s chief executive, Neal Barclay, said the deal represented an exciting opportunity for the future of the Meridian Energy Australia business, given Shell’s and ICG’s intentions to grow their respective renewable energy and retail presences in Australia.

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