Macquarie Bank to acquire UK gas supply operation

01 August 2006

Macquarie Bank today announced it has agreed to acquire the UK gas supply company Corona Energy (Corona), a physical supplier of energy to industrial and commercial customers in the United Kingdom.

Based in London, Corona is the UK’s largest independent non-domestic supplier of gas, with 8,000 commercial customers, serviced across 40,000 sites.  It delivers 5% of the UK’s gas supplied to the Small and Medium-sized Enterprise and Industrial and Commercial sectors.

The transaction presents a unique opportunity for both companies to derive considerable benefits from the other’s existing gas market expertise and infrastructure.

According to Simon Grenfell, Head of Macquarie’s Commodity Markets Division, “The acquisition of Corona is a significant strategic step for Macquarie's European energy markets business and will expand our capability and presence in the UK gas market.  It adds a strong client platform and years of valuable experience in physical supply to our existing energy markets activities.

“Macquarie and Corona have complimentary operations and skill sets and we expect there will be strong mutual benefits from the relationship,” Mr Grenfell said.

Under Macquarie ownership, Corona will be able to expand both the scale and range of products and services that it offers its customers, by having access to additional resources and risk management expertise. 

Founded in 1994, Corona and its management have an enviable reputation in the UK gas supply market. The company employs around 110 people in London involved in sales and marketing, customer service, administration, IT operations and energy.  

Corona’s CEO, John Spellman, and his management team will work with Macquarie to pursue opportunities for both existing and new customers.

Mr Spellman said, "We are very excited to become a part of Macquarie’s platform for growth in energy markets, and to have access to its expertise in commodity price risk management. This transaction will enhance our ability to provide a more comprehensive service to our customers, and provide the support to further develop and grow the business.

Under the terms of the acquisition, Corona will become a wholly-owned operating subsidiary of the Macquarie Bank Group, and will continue to operate under the Corona name. The acquisition is conditional upon EC Merger Regulation clearance.

Alison Jefferis
Corporate Communications
Macquarie Group (London)
Tel: (44) (0)20 7065 2335
Mobile: (44) (0)79 1938 2958

Karen Smith
Corporate Communications
Macquarie Group (London)
Tel: (44) (0)20 7065 2420
Mobile: (44) (0)79 1708 1541