Daily Management Review

Australian AGL Energy refuses to sell its business for $3.54B


According to Reuters, Australian energy provider AGL Energy has rejected a $3.54 billion bid from Canadian billionaire Mike Cannon-Brookes and the Brookfield Foundation to buy the company.

Australian AGL Energy refuses to sell its business for $3.54B
Mr. Cannon-Brooks, an environmentalist and Canada's second richest man, wants to buy AGL Energy so that all of the company's coal-fired power plants can be shut down as quickly as possible. AGL emits 8% of all carbon dioxide emissions produced by Australian industries, making it the country's greatest polluter.

AGL, on the other hand, believes the Canadian billionaire's offer was too low. Despite this, the company's stock increased by more than 10%, as investors expect Mr. Cannon-Brookes and Brookfield to make a better offer.

AGL has stated that it plans to follow its own strategic development plan, which was adopted last year. The firm intends to split into two distinct businesses. The whole power producing business will be consolidated into a new company called Accel, with AGL Australia focusing only on electricity sales.

source: reuters.com