KEY POINTS:
Contact Energy today announced it will purchase the Rockgas LPG business from Origin Energy for approximately $156 million.
Contact Energy chief executive David Baldwin said the decision to purchase Rockgas gives Contact a unique platform in New Zealand's energy markets and provides strong growth opportunities for Rockgas through Contacts large customer base.
"We have been attracted to Rockgas for some time as a logical way through which to broaden our business and the offers that we can take to existing and new customers," said Baldwin.
"Through Contact's acquisition of Rockgas we will be able to supply not only electricity and reticulated natural gas, but LPG for those homes and businesses which are not connected to gas networks, or wish to use LPG to manage peak energy demands."
Rockgas currently supplies bottled and reticulated LPG, and automotive product, to around 300 bulk industrial clients, 7,000 commercial customers and over 17,000 domestic customers. Rockgas employs around 150 staff and sells around 90,000 tonnes of LPG per annum.
The Rockgas acquisition is conditional on approval under the Overseas Investment Act, and is expected to be complete within this financial year.
- NZ HERALD STAFF
