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AGL Energy formally scraps merger proposal with Origin

7 March 2007 – Australia’s largest power retailer AGL Energy Ltd has formally ended its pursuit of an A$14bn (US$10.83bn) merger with rival Origin Energy Ltd.

The merger of equals proposal, which was rejected by Origin last month, had now been withdrawn, AGL chief executive Paul Anthony. Origin rejected the deal in late February, on grounds that it offered few upsides and would strip value from Origin.

AGL is Australia’s largest gas and electricity retailer, with about 3.6 million customers, while Origin serves about two million customers, in Australia, New Zealand and the Pacific.