Mitsui has agreed with GDF SUEZ to acquire a 28% equity stake in its subsidiary, International Power (Australia) Holdings Pty Ltd (IPAH), which owns and operates the power generation business as well as the power and gas retail business in Australia.

IPAH owns 4 generation plants with capacity totaling 2,604MW, as well as the power and gas retail business which has over 350,000 customers (both residential and business) largely based in the states of Victoria and South Australia. The power generation unit sells its output to Australia's National Electricity Market, including Simply Energy, the power retail unit of IPAH.

This acquisition is the first entrance of Mitsui in a vertically integrated power business.

Mitsui and GDF SUEZ already collaborate in the Australian power generation sector via IPM Eagle LLP, a joint venture established in 2004.

As a result of this acquisition, Mitsui now has an equity interest in all of the power business operated by GDF SUEZ in Australia, with a total generation capacity of 3,748MW. This portfolio makes GDF SUEZ and Mitsui the largest power producer in Victoria and the fourth largest in Australia, by power production.

The investment also strengthens the global partnership between GDF SUEZ and Mitsui, which covers power generation and LNG export businesses across 12 countries worldwide.

Mitsui will seek to maximize the value of IPAH with its recognized strengths in financing, a large local customer base and EPC experience in the Australian power sector. In addition, Mitsui hopes to leverage IPAH's experience operating in Australia's highly deregulated electricity market, by promoting electricity retail business, energy efficiency and environmentally-conscious smart city development in Japan and other countries.

Closing of the transaction is expected to occur during October 2013, upon satisfaction of certain conditions, including obtaining approvals from Australian regulatory authorities.