On December 11, 2025, Sembcorp Industries agreed to acquire 100% of Alinta Energy from Chow Tai Fook Enterprises for an enterprise value of A$6.5bn, the largest Australian energy deal of the year.
The price has split the market. While sell-side analysts view the transaction as earnings accretive, CTFE had spent years seeking an exit, with prior suitors, including KKR, reportedly valuing Alinta closer to A$4–4.5bn. At roughly 6.6x earnings, Sembcorp is paying a premium to ASX peers such as AGL, raising questions over whether it has overpaid.
Sembcorp’s case is strategic. The deal provides immediate scale in Australia, adding 3.4GW of generation capacity (including the 1.2GW Loy Yang B coal plant) and a 10.4GW renewables and firming pipeline, supporting its ambition to reach 25GW of global renewables capacity by 2028. Coal cash flows from Loy Yang B are expected to fund the transition - albeit with ESG risk.
Sembcorp was advised by Goldman Sachs and DBS, while CTFE was advised by UBS and RBC Capital Markets. The deal is subject to FIRB and competition approval and is expected to complete in H1 2026.
