The New Zealand Herald yesterday reported that merger discussions are “live, detailed and promising”, quoting finance industry sources saying the advisers are ABN Amro for Vector, and Goldman Sachs JBWere for NGC.
It is believed NGC and Vector managers are expected to decide within the next two to three weeks whether such a deal is warranted. They would then take a proposal to their owners.
Sources say a full merger of the two companies and a “ring fencing” plan - separating the company's Auckland assets but combining the rest with listed firm NGC - have already been investigated.
Vector has assets of NZ$3 billion and describes itself as "the largest owner and manager of network infrastructures in New Zealand", delivering electricity, gas, and broadband communications in the Auckland and Wellington regions.
As EnergyReview.Net has previously reported, the Australian Gas Light company, through its 66% shareholding in NGC, could easily want a controlling stake in either Vector or Powerco, though not both as this would surely raise the hackles of industry watchdog the Commerce Commission.
NGC's transmission and distribution gas pipelines and energy metering services would make good fit with either Vector or Powerco.
