Australia's Origin Energy to buy 20% stake in UK's Octopus Energy
Summary
MELBOURNE (Reuters) - Australias top power and gas retailer, Origin Energy ORG.AX, agreed to buy a 20% stake in UK retailer Octopus Energy for A$507 million ($327 million), with an exclusive license to use its technology in Australia, the companies said on Friday. Origin Chief Executive Frank Calabria said the deal was focused on securing the low-cost technology and user-friendly system Octopus has developed. “Our main game is about delivering on that retail strategy and doing it fast and getting ahead of our competitors, which I think we’re putting ourselves in a good position to do,” he told Reuters in an interview. The push comes as Origin faces pressure from the Australian government to cut retail tariffs and as it looks to differentiate itself in the transition to cleaner energy, allowing it to offer products tailored to customers adopting rooftop solar power, home batteries and electric cars. Octopus, among a number of smaller brands challenging Britain’s traditional power suppliers, last month agreed to work with German utility E.ON to revamp its UK retail business and in January acquired French firm Engie’s 70,000 British residential customers.
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