AustralianSuper ‘may be Australia’s worst climate blocker’ if it stops Origin deal, says environment group

The Nature Conservation Council of NSW has lobbed the inflammatory accusation saying AustralianSuper must support the Origin deal or add to Australia’s energy transition troubles.

AustralianSuper would become one of Australia’s biggest climate blockers if it were successful in halting the $20bn acquisition of Origin Energy, a state environmental group has declared.

The bombastic commentary will be seized on by Brookfield and EIG Partners as it attempts to sway Origin Energy shareholders to support its $9.53-a-share offer at a vote on November 23.

AustralianSuper has vowed to use its position as Origin’s largest shareholder – with a 15 per cent stake in Australia’s largest electricity and gas retailer – to block the deal.

Environmentalists and authorities have supported the offer in a large part due to promises by Brookfield to spend between $20bn and $30bn to accelerate the country’s transition away from fossil fuels.

Joining support for the deal, the Nature Conservation Council of NSW said AustralianSuper must support the deal or add to Australia’s energy transition troubles.

“AustralianSuper, time to get out of the way and stop blocking $30bn of new clean energy that will bring down power bills and help achieve climate goals,” Nature Conservation Council of NSW said in a message posted on X, formerly known as Twitter.

AustralianSuper has said it believes Brookfield and EIG’s revised offer undervalues Origin and it wants to increase its role in Australia’s energy transition.

AustralianSuper has set aside $10bn to invest in Australia’s energy transition.

Brookfield and EIG must win favour of 75 per cent of Origin’s shareholders if it is to succeed in its bid for Origin, a vote that is expected to be close due to AustralianSuper’s stance.

Brookfield and EIG can ill afford to lose any votes and, in a boost, wealth management company Ord Minnett has recommended its clients support Brookfield and EIG’s bid.

Ord Minnett had previously urged clients to reject the consortium’s previous offer of $18.7bn for Origin, but said the revised offer marked a sizeable premium and should be accepted.

“The new price is 12 per cent above our stand-alone valuation of Origin of $8.50, which we consider a reasonable premium. It is also slightly above the top end of the independent expert’s valuation range,” Ord Minnett said in a letter seen by The Australian.

With a significant opposition stake, Brookfield and EIG can ill afford to lose any more votes, especially if the shareholder turnout at the November 23 vote is low.

Significant Origin shareholders such as Allan Gray have said they would support the transition, while others have yet to publicly declare their position.

The uncertainty over the deal’s prospect has weighed on Origin share price. Shares fell more than 6 per cent last week when AustralianSuper said it would vote against the revised bid from Brookfield and EIG, although prices have rebounded slightly since. Origin shares closed up more than 1 per cent on Tuesday.

If the consortium’s bid fails at the shareholder vote, they could return with an off-market bid, which would result in one of the duo buying Origin and then selling a division to the partner.

Originally published as AustralianSuper ‘may be Australia’s worst climate blocker’ if it stops Origin deal, says environment group