Australia's AGL to split into two
Australian gas and power retailer AGL plans to create two energy businesses via a structural separation, it said on March 30.
The proposed split of the company involves “New AGL”, which will be an energy retailer; and “PrimeCo” which will be Australia’s largest electricity generator. AGL CEO, Brett Redman, said that the separation has been proposed to meet the needs of a dynamic industry.
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“The accelerating market forces of customer, community and technology are driving the imperative to create this new path and separate AGL into two distinct organisations,” Redman said. “The proposed structural separation would give each business the freedom, focus and clarity to execute their own respective strategies and growth agendas while playing an equally important, but different, role in Australia’s energy transition.”
The company said it will immediately start a process of engaging with shareholders, regulators, government and workforce stakeholders with a view to confirming the timing and nature of the proposed separation by June this year.
AGL is Australia's oldest utility and delivers 4.2mn gas, electricity, and telecommunications services to its residential, small and large business, and wholesale customers across the country. It operates Australia’s largest electricity generation portfolio, with an operated generation capacity of 11.2 GW.