Singapore’s Sembcorp nears deal to buy Alinta Energy
Singapore energy giant Sembcorp is moving to acquire Australia's fourth-largest power retailer Alinta Energy, in a deal that could be clinched this week.
Singapore-listed energy major Sembcorp is poised to clinch a deal as early as this week to acquire Australia’s fourth-largest electricity and gas retailer, Alinta Energy, in what would be one of the most consequential entries by a foreign corporation into the nation’s power market in years, and a fresh marker of tightening economic links between Canberra and Singapore.
People familiar with the matter said the agreement follows months of detailed negotiations and intensive due diligence, a process so advanced that a formal announcement is expected imminently. The talks involved senior figures on both sides and were understood to have progressed substantially around the time Singaporean Prime Minister Lawrence Wong travelled to Australia in October for his first official visit, during which he met Anthony Albanese.
For Sembcorp, the acquisition would mark a decisive push into a sector in the midst of structural upheaval as capital floods towards renewables, firming technologies and the infrastructure required to support an increasingly decentralised grid.
The company has been expanding across the region as it charts a pathway away from fossil fuels, targeting assets that deliver predictable long-term returns and can be blended into its growing low-carbon portfolio. Locking in a major Australian utility would give the firm the scale and platform needed to accelerate that strategy in a market seen as critical to the Indo-Pacific’s clean-energy ambitions.
The transaction would also bring to a close a long-running effort by Alinta’s parent, Hong Kong-based conglomerate Chow Tai Fook, to offload the retailer. Chow Tai Fook paid $5.2bn for Alinta in 2017 and has since struggled to secure a buyer willing to take on the business at scale amid shifting climate policies, rising decarbonisation costs and persistent debate over the future of coal-fired generation.
Alinta operates Victoria’s third-largest coal power station, Loy Yang B, but has been seeking to expand its renewable footprint; analysts have long viewed Chow Tai Fook as reluctant to deploy the billions required to reposition the business for a decarbonising grid.
Any takeover will require clearance from Australia’s Foreign Investment Review Board, although the approval process is not expected to prove contentious after Mr Wong and Mr Albanese used recent discussions to emphasise emerging opportunities for deeper co-operation on green energy. Their engagement has been viewed by industry figures as a signal that both governments see strategic alignment in accelerating investment flows tied to the energy transition.
If finalised, Sembcorp’s entry would reshape the competitive landscape and signal renewed confidence from international investors in Australia’s evolving power sector.
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Originally published as Singapore’s Sembcorp nears deal to buy Alinta Energy
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