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Australian Super Rejects Brookfield's Offers for Origin Deal

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Australian Super Rejects Brookfield's Offers for Origin Deal

Australian Super, the largest shareholder in Origin Energy Ltd., has declined further talks with private equity firms Brookfield Asset Management and EIG Global Energy Partners regarding a A$19.4 billion ($12.6 billion) takeover plan. The $300 billion Australian pension fund remains committed to opposing the deal and may issue further statements in the coming week reiterating its opposition. Representatives from both the Brookfield consortium and AusSuper declined to comment on the matter. The failed overtures highlight the strained relationship between the two megafunds and set the stage for a public campaign over the attempted takeover of Australia's largest energy provider. The consortium had sought fresh talks with AusSuper in a last-ditch effort to salvage the take-private plan. Backup options included considering a seat for the fund as a member of the consortium or resurrecting the transaction in a new form as an off-market takeover offer. However, AustralianSuper deemed the offer "substantially below our estimate of Origin's long-term value," citing the company's green ambitions as a reason for a higher price. In conclusion, Australian Super's rejection of Brookfield's offers for the Origin deal demonstrates the fund's commitment to opposing the takeover plan. The outcome of this dispute will shape the future of Australia's largest energy provider and highlight the influence of major pension funds in the country's business landscape.

Hot Take: The Impact of Australian Super's Rejection of Brookfield's Offers on New Businesses

The decision by Australian Super, the largest shareholder in Origin Energy Ltd., to reject Brookfield Asset Management's takeover bid could have significant implications for new businesses in the energy sector and beyond. The $300 billion Australian pension fund's refusal to engage in further talks underscores its commitment to preserving Origin's long-term value and its green ambitions.

Investor Confidence and Market Dynamics

Such a bold move by a major pension fund could influence investor confidence and market dynamics. It sends a clear message about the importance of long-term value and sustainable practices, which could shape investment strategies and business models for new enterprises.

Role of Pension Funds in Business Decisions

The incident also highlights the significant role pension funds can play in major business decisions. New businesses must be aware of this dynamic and consider the interests and perspectives of these institutional investors when making strategic decisions.
Future of Energy Sector
Finally, Australian Super's emphasis on Origin's green ambitions suggests a growing focus on sustainability in the energy sector. This could influence the direction of new businesses in this industry, pushing them towards more environmentally-friendly practices. In conclusion, Australian Super's rejection of Brookfield's offer could have far-reaching implications, shaping investment strategies, business decisions, and industry trends.
Story First Published at: https://financialpost.com/pmn/business-pmn/aussuper-said-to-knock-back-brookfield-overtures-on-origin-deal
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