Contact Energy Limited (ASX:CEN) has received the green light from the Commerce Commission of New Zealand for its proposed acquisition of Manawa Energy Limited (ASX:MNW). Rob McDonald, Chair of Contact, described this regulatory decision as a key achievement. In his view, the merging of Contact and Manawa represents a significant advancement for New Zealand’s energy transition, promising increased capacity for investment in future power generation, greater security in the energy market, and an eventual positive influence on long-term wholesale energy costs.
Back in September 2024, Contact revealed that it had formalized a Scheme Implementation Agreement (SIA) to purchase all of Manawa’s shares through a court-sanctioned Scheme of Arrangement. However, the completion of this acquisition is contingent on several outstanding conditions, which are detailed in the SIA.
These prerequisites include the receipt of an advisor’s report, which independently verifies that the acquisition price is within or exceeds the fair value range. Further conditions involve securing approvals from the High Court and Manawa’s shareholders at a dedicated meeting, alongside other standard procedural requirements.
Manawa is expected to disseminate additional information about the Scheme, along with a notification for the shareholder meeting, to its shareholders later in the current month. Contact’s current target for finalizing the Scheme implementation is July 2025.
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