Singapore’s Sembcorp Buys Australia’s Alinta for $4.3 Billion in Renewables Push
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Article content(Bloomberg) — Sembcorp Industries Ltd. agreed to buy Australian power generator and retailer Alinta Energy Pty for A$6.5 billion ($4.3 billion) in enterprise value, furthering the Singaporean company’s ambitions to expand outside its home market.Sign In or Create an AccountEmail AddressContinueor View more offersArticle contentSembcorp, which is backed by state-owned Temasek Holdings Pte., said Thursday it will keep Alinta’s existing management team and operational structure.
Chow Tai Fook Enterprises Ltd. has owned Alinta since 2017. The deal is expected to be completed in the first half of 2026, subject to regulatory approval.Article contentWe apologize, but this video has failed to load.Try refreshing your browser, ortap here to see other videos from our team.Article contentArticle contentSembcorp sees Australia as key to reach a target to boost renewables capacity by almost a quarter to 25 gigawatts by 2028. The Singaporean company has spent more than S$5 billion ($3.9 billion) since 2020 to grow that portfolio sixfold. It owns wind, solar, hydro and energy assets in markets including Southeast Asia, India and China that far exceed the city-state’s own capacity. Article contentTop StoriesGet the latest headlines, breaking news and columns.There was an error, please provide a valid email address.Sign UpBy signing up you consent to receive the above newsletter from Postmedia Network Inc.Thanks for signing up!A welcome email is on its way. If you don't see it, please check your junk folder.The next issue of Top Stories will soon be in your inbox.We encountered an issue signing you up. Please try againInterested in more newsletters? Browse here.Article contentAlinta has more than 2.7 gigawatts of generation assets in Australia, including gas plants, a wind farm, and a major Victorian coal station slated to close by 2047. The company also has a development pipeline of about 4 gigawatts of renewables.Article content“This acquisition strengthens our presence in a key developed market while providing a scalable platform for Sembcorp to accelerate renewables and low-carbon growth,” said Alex Tan, who heads Sembcorp’s renewables business in China and Southeast Asia. Article contentHong Kong billionaire Henry Cheng’s Chow Tai Fook bought Alinta — which also has more than one million electricity customers — for more than A$4 billion in 2017. Cheng has been looking to offload assets to overcome liquidity challenges at his real estate firm New World Development Co., including properties in the family’s luxury Rosewood Hotel Group. Article contentArticle contentThe takeover needs approval from Australia’s Foreign Investment Review Board, which is prone to delays and has previously blocked takeover bids in the resources sector, particularly when state-owned entities are involved. Article contentIt follows Singaporean Prime Minister Lawrence Wong’s first official visit to Australia in October, where he met Australian counterpart Anthony Albanese to discuss their strategic partnership. The leaders underscored their countries’ longstanding ties, built on trade and defence cooperation.Article contentChow Tai Fook has been exploring options to exit Alinta since at least 2022, when it approached Goldman Sachs Group Inc. to reach out to potential buyers. It again hired advisers in early 2025.Article contentGoldman Sachs and DBS Group Holdings Ltd. are currently advising Alinta, while RBC Capital Markets and UBS Group AG are advising Chow Tai Fook, according to the AFR. Article content—With assistance from Low De Wei and Karoline Kan.Article content(Updates with comments from Sembcorp in fifth paragraph)Article contentTrending CRA penalized taxpayer for repeated failure to report income Personal Finance Who is Mark Wiseman? The career of the man expected to be Canada’s new U.S. ambassador Finance U.S. trade deficit unexpectedly shrinks to smallest since 2020 Economy This generation of Canadians is rapidly increasing its wealth and may soon unseat the boomers Wealth The best mortgage rates in Canada right now Real Estate Share this article in your social networkCommentsYou must be logged in to join the discussion or read more comments.Create an AccountSign in Join the Conversation Postmedia is committed to maintaining a lively but civil forum for discussion. Please keep comments relevant and respectful. Comments may take up to an hour to appear on the site. You will receive an email if there is a reply to your comment, an update to a thread you follow or if a user you follow comments. Visit our Community Guidelines for more information. CRA penalized taxpayer for repeated failure to report income Personal Finance Who is Mark Wiseman? The career of the man expected to be Canada’s new U.S. ambassador Finance U.S. trade deficit unexpectedly shrinks to smallest since 2020 Economy This generation of Canadians is rapidly increasing its wealth and may soon unseat the boomers Wealth The best mortgage rates in Canada right now Real Estate