Sale of NZ power and gas company Clarus due soon - AFR

Clarus owns the Firstgas pipeline which includes 2500km of high-pressure gas pipes.

Canada’s Brookfield and its bid partner Powerco are days away from finalising terms to acquire Kiwi gas and electricity distribution infrastructure owner Clarus Group from Igneo Infrastructure Partners, the Australian Financial Review has reported.

The AFR’s Street Talk column said the bidders were expected to sign the deal this week, which would value Clarus at about $2 billion and would require approval from New Zealand’s Overseas Investment Office.

The AFR reported in September that the parties were in talks, but neither Clarus, Powerco nor Ingneo have been willing to confirm that to the Herald.

Under the deal, Brookfield would buy Clarus’ gas network, including the 4800km of gas pipelines and 2500km of high-pressure gas transmission network held under the First Gas brand, the paper said.

Powerco would carve out the electricity lines owned by Clarus’ Firstlight Network on the east coast to expand its network.

Powerco is an energy distributor owned by QIC, Australian Retirement Trust and Dexus.

In a company report, Powerco said it connects more than 900,000 Kiwis across the North Island to electricity and gas through our network of local lines, cables and pipes.

Clarus is one of New Zealand’s largest energy groups.

“Whether it’s transmission, distribution, supply or storage of energy, the companies within the Clarus group service nearly half a million homes and businesses of all sizes around New Zealand,” the company’s website says.

Brookfield has more than US$1 trillion ($1.7t) of assets under management across infrastructure, renewable power and transition, private equity, real estate and credit.

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.

In 2022, Igneo bought Waste Management from Chinese private equity firm Beijing Capital.

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