Canada’s Brookfield in talks to buy Rockgas owner Clarus Group in $2.2b deal - AFR

Igeo is close to selling gas and power company Clarus, the AFR reports. Photo / Supplied

Igneo Infrastructure Partners is poised to sell one of New Zealand’s biggest energy companies, Clarus Group, to Canadian private capital giant Brookfield, according to the Australian Financial Review.

Clarus owns gas and electricity distribution networks in New Zealand, and the paper said a sale could value the business at more than A$2 billion ($2.2b).

The company’s Firstgas connects more than 300,000 homes and businesses with natural gas through its gas distribution and high-pressure transmission network.

Its other main businesses are Flexgas, which provides energy storage services to electricity generators, and New Zealand’s largest LPG retail supplier, Rockgas.

Clarus also owns the Firstlight Network – the lines company supplying electricity to the Tairāwhiti and Wairoa region.

Brookfield is in advanced discussions to acquire Clarus, the Australian Financial Review’s (AFR) Street Talk, quoting anonymous sources, said.

AFR’s sources said Brookfield is buying the business alongside Kiwi gas and electricity distributor Powerco, whose Australian owners – QIC, Australian Retirement Trust and Dexus Group – have been hunting for growth opportunities.

“It is understood the pair expect to agree terms and sign on the dotted line in coming weeks,” the paper said.

Igneo, part of the First Sentier Group, is a specialist global infrastructure manager investing in mature, mid-market infrastructure companies in renewables, digital infrastructure, waste management, water utilities, transportation and logistics sectors in Europe, the UK, Australia, New Zealand and North America.

First Sentier is ultimately owned by Mitsubishi UFJ Financial Group.

Clarus, approached by the Herald, said it had no comment to make on the report, while Igneo also declined to comment.

In 2022, Igneo bought Waste Management NZ from Chinese private equity firm Beijing Capital after beating KKR & Co and Morgan Stanley Infrastructure Partners to the draw.

Jamie Gray is an Auckland-based journalist, covering the financial markets and the primary sector. He joined the Herald in 2011.