Contact Energy gains approval to acquire Manawa Energy

** Contact Energy (NZX:CEN) has received clearance from the New Zealand Commerce Commission for its proposed acquisition of Manawa Energy Limited, a deal initially announced in September 2024. According to Contact Chair Rob McDonald, the combination aims to bolster the nation's energy transition by increasing investment in future generation capacity, enhancing market security, and ultimately contributing to long-term reductions in wholesale energy prices. The company also announced that it secured a deal with Methanex to purchase ~2.8PJ of gas to be supplied over an eight-week period, starting immediately, to supply electricity to New Zealanders as there has been some recent dwindling upstream gas supplies. As such, Contact intends to run its Taranaki Combined Cycle gas-fired power station (TCC) alongside gas peaking units at Stratford through winter 2025, while consuming TCC’s remaining operating hours, which will likely result in the closure of TCC immediately after winter 2025. Implementation of the Manawa Scheme is subject to several conditions, including court and shareholder approval, and is targeted for July 2025. Additional details, including notice of the shareholder meeting, will be provided to Manawa shareholders later this month.