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Unleashing the commercial value of massive utilities M&A

Read how Third Horizon-led negotiations and a new asset operating model delivered significant commercial benefits following one of the largest utilities acquisitions in Australian corporate history...

Background
In one of the largest such transactions in Australian corporate history, our client was part of a consortium that acquired a major Australian utility asset.

Following the acquisition, the asset - which previously operated as a single entity - was broken up among consortium members.

Our client sought our help in establishing a new operating model and associated agreements between the new owners, as a basis for the commercial operation of their part of the asset.

Our Role
Third Horizon developed a new operating model for the asset and managed the key commercial negotiations to implement it. This included developing the strategies and model for commercial and asset management and for capacity utilization to maximize commercial benefit.

We developed the strategy for, and led commercial negotiations with, external parties for guaranteed compressor provision and asset management services.

We managed transition of key business processes, developed the IT business requirements to transition and align IT systems and data, and identified cost savings opportunities in the new model.

Results
Our client realised significant commercial benefits in compression and capacity negotiations.

The negotiations we led delivered an asset maintenance contract that reduced external commitment by 30 years????? and transferred annual cost control of $10m to internal contracts.

Third Horizon was subsequently engaged to help implement the transition of services for asset management.

Additional information