Contact Energy to buy NZ rival Manawa to grow power capacity


The amalgamation comes as the electricity industry faces calls for change to address a lack of competition and investment that critics say has contributed to a surge in wholesale power prices in the country. — Bloomberg

WELLINGTON: New Zealand power company Contact Energy has agreed to buy smaller rival Manawa Energy to create a business better able to develop the new generation the South Pacific nation requires.

Contact announced a shares-and-cash deal yesterday in Wellington that values Manawa at 1.86 billion New Zealand dollars (US$1.1bil) or 5.95 New Zealand dollars a share.

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