# What Does Shell’s Powershop Acquisition Mean for Aussie Investors? Author: Pal Sinha, Barnali Author URL: https://financedigest.com/author/pal-sinha-barnali Published: 2021-12-10 Category: INVESTING Category URL: https://financedigest.com/category/investing Meta Title: Shell Acquires Powershop: Deal Details & Backlash Explained Meta Description: Shell's $729 million deal to acquire Powershop has shaken up the market, but what are the terms, and why the backlash from green customers? Let's URL: https://financedigest.com/what-does-shells-powershop-acquisition-mean-for-aussie-investorshtml ![undefined](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/smiling-businessman-working-with-laptop-sbi-300855336-1736836612247-compressed.jpg) Gas and energy companies have been in the news recently, after an international shortage and supply chain issues swept across the length-and-breadth of the globe. However, sentiment in the market has boomed of late, after multinational oil and gas giant Shell moved to acquire online electricity retailer Powershop. This was part of a $729 million deal, which has shaken up the marketplace and dramatically altered the online marketplace. But what are the precise [terms of the deal](https://www.financedigest.com/israel-sees-no-new-iran-nuclear-deal-before-u-s-november-mid-terms.html "Israel sees no new Iran nuclear deal before U.S. November mid-terms"), and why has there been a backlash from green customers? Let’s find out! **What’s in the Deal?** The takeover was revealed at the beginning of the week, when Meridian Energy, a New Zealand and Australian-listed electricity provider, announced it was [selling its Aussie-based business](https://www.financedigest.com/reasons-why-you-should-hire-a-business-broker-to-sell-your-business.html "Reasons Why You Should Hire a Business Broker to Sell Your Business") to the Shell and Infrastructure Capital Group. Part of the business being sold includes Powershop, while the deal is currently subject to foreign investment [approval from the Australian](https://www.financedigest.com/australian-court-approves-bhps-6-4-billion-oz-minerals-takeover.html "Australian court approves BHP’s .4 billion OZ Minerals takeover") Government. Fortunately, this [approval is expected to be completed by Q1 2022](https://au.finance.yahoo.com/news/shell-powershop-takeover-aussie-investors-200735198.html), at which point Shell will assume full ownership of Powershop and Meridan’s core Australian infrastructure assets (including the Mt Mercer and Mt Millar Wind farms). These assets also include the Hume, Burrinjuck and Keepit hydro [power stations](https://www.financedigest.com/londons-battersea-power-station-reborn-as-office-and-shopping-hub.html "London’s Battersea Power Station reborn as office and shopping hub"), and we’ll have a little more on this segment of the deal later in the piece. Ultimately, stakeholders have described this as a huge accomplishment for all parties involved, from Meridian’s shareholders to the Powershop itself. After all, the latter is an independent electricity and gas retailer that serves more than 185,000 customers across residential and small business markets, and the [acquisition represents significant value](https://www.financedigest.com/iris-acquisition-enables-accountants-to-add-greater-value-to-their-clients.html "IRIS acquisition enables accountants to add greater value to their clients") for the company. **How Have Customers and Investors Reacted?** Interestingly, many of Powershop’s existing customers have reacted badly to the news, while activist group Environment Victoria [moved to terminate a six-year partnership](https://www.investing.com/news/stock-market-news/shell-faces-anger-over-takeover-of-australian-green-energy-retailer-2688888) with the brand in the light of Shell’s ownership. The issue here is clear, with activists concerned that the [acquisition by a major energy brand](https://www.financedigest.com/10-million-to-be-whipped-into-ice-cream-brand-four-winters-following-acquisition.html " Million To Be Whipped Into Ice Cream Brand Four Winters Following Acquisition ") and polluter would compromise Powershop’s pre-existing commitment to protecting the planet, particularly in terms of promoting more renewable energy sources. However, this overlooks the fact that deal has kept the company tied to its wind and hydropower assets through power purchase agreements, while there’s also an [agreement to guarantee that the energy](https://www.financedigest.com/petrofac-hitachi-energy-receive-14-billion-agreement-from-tennet.html "Petrofac, Hitachi Energy receive billion agreement from TenneT") produced will still be 100% carbon offset. Even Shell has stated that the acquisition was completed in light of the ongoing challenges surrounding emissions and renewable energy, as major energy players commit to [invest more heavily in a cleaner future](https://www.financedigest.com/investing-in-the-city-thats-investing-in-itself-welcome-to-the-liverpool-of-the-future.html "INVESTING IN THE CITY THAT’S INVESTING IN ITSELF – WELCOME TO THE LIVERPOOL OF THE FUTURE!  "). This is good news for activists and investors alike, with [the deal likely to increase market sentiment](https://www.fxopen.com/en-au/metatrader-5/) without undermining the medium or long-term viability of Powershop shares. While Meridian [shares have declined since the deal](https://www.financedigest.com/u-s-mid-tier-lenders-shares-rise-in-frankfurt-after-svb-deal.html "U.S. mid-tier lenders shares rise in Frankfurt after SVB deal"), Powershop offers a viable option to investors in the current market, while indices that include clean energy stocks may also be appealing at present. **This is Contributed Content.** --- This blog is powered by Superblog. Visit https://superblog.ai to know more. ---