Oil and gas supermajor enters Australian electricity industry with Ashurst's help

An oil and gas supermajor is entering the Australian electricity industry with Ashurst’s help.

The leading law firm has advised Shell Energy Australia on its proposed acquisition of 100% of ERM Power, said to be the second-largest electricity retailer to commercial and industrial customers in Australia. The company also owns and operates two gas-fired power plants.

The deal, reported to be worth $617m, is unanimously recommended by the ERM board. Founding and major shareholder Trevor St Baker has also said that he intends to vote in favour of the proposed members' scheme of arrangement, in the absence of a superior bid and subject to an independent expert concluding that the scheme is in the best interests of ERM shareholders.

The Ashurst team was led by corporate partner John Brewster, with support from partners Lynda Tully, John Sartori, Nick Terry, and Bruce Macdonald; counsel Eliza Blandford; associates Stephanie Mattei and Adam Ong; and graduate John Saunders.

Partners Robert Jamieson, Paul Newman, and Dan Brown; senior associates Tristan Shepherd and Natalie Barris; and associates Danielle Davidson, Duncan Knowles, and Ainsley Masek provided corporate projects advice.

Partner Madeleine de Garis and associate Bonnie Kwok advised on financing. Partner Alyssa Phillips, senior associate John McKellar, and associate Anna Glen advised on competition. Financial regulation advice was provided by partner Corey McHattan. Associate Rebecca Lew advised on dispute matters.

Shell’s legal team was headed by M&A associate counsel Peter Lorbeer.