The New Zealand Herald today reports that the two companies, which have a total market capitalisation of nearly NZ$1.8 billion, are investigating the feasibility of a merger and have engaged investment bank Macquarie as an adviser.
But nothing is certain, with the NZH saying the merger is at the concept stage only.
Wellington-headquartered NGC is a significant gas trader and reticulator, while also being involved in electricity metering, and LPG distribution and sales.
New Plymouth-headquartered Powerco is this country’s largest gas distributor and second largest electricity lines company. It is an aggressive network company, having expanded significantly in recent years, including recently into the Tasmanian gas reticulation industry.
NGC spokesman Keith FitzPatrick told EnergyReview.Net this morning that his company was still evaluating its response to the merger rumours, while ERN was unable to contact Powerco boss Steven Boulton.
News of the possible NGC-Powerco merger comes amid international speculation that NGC’s majority shareholder AGL may sell its 66% stake in NGC, but buy Edison Mission Energy’s 51% shareholding in Contact Energy - one of an array of assets up for sale by the US power giant.
Aussie energy giants AGL and Origin are seen as logical buyers for the EME stake in Contact.
Reuters in Melbourne today said that at least three bids dominated by Asian firms were among those shortlisted for EME’s sprawling international portfolio. Bidders included Japan's Mitsubishi, advised by ING bank, Japan’s Mitsui, and a Morgan Stanley-advised consortium led by British utility group International Power.
