Origin Energy Limited - acquisition of Babcock & Brown Power's Uranquinty Power Station
Type of assessment
Informal Review
Reference
32978
Acquirer(s)
Origin Energy Limited
Target(s)
Babcock & Brown Power's Uranquinty Power Station
Industry
Electricity
Summary
Origin Energy Limited announced that it has acquired the Uranquinty Power Station from Babcock and Brown Power on 4 July 2008.
Outcome of assessment
Not opposed
Total review days *
20
Commenced public review
7th July 2008
Date completed
1st August 2008
Market definition
The ACCC considered the relevant markets to be:
- The wholesale supply of electricity in New South Wales,
- The supply of financial (hedge) contracts to New South Wales electricity retailers, and
- The retail supply of electricity to residential customers in New South Wales.
Competition analysis
The ACCC considered that Origin faces sufficient competitive constraints post-acquisition and that the acquisition is unlikely to cause a substantial lessening of competition in any of the relevant markets. This conclusion was informed by the following factors:
- The competitive constraint posed by the three state-owned generation businesses in NSW.
- The substantial market share of the major state-owned electricity retailers and the presence of a number of competing privately-owned electricity retailers in NSW.
- Origin's limited presence in the generation market and current absence of interest in any generation assets in NSW.
Review timeline
Date
Event
4th July 2008
Origin Energy acquired Babcock & Brown Power's Uranquinty Power Station.
7th July 2008
ACCC commenced review under the Merger Review Process Guidelines.
21st July 2008
Closing date for submissions from interested parties.
1st August 2008
ACCC announced it would not oppose the acquisition.
* Total Review days = Total business days less public holidays and time during which the review was suspended.
