Australia’s biggest power utility Origin Energy is set to be acquired for $18.7 billion by a consortium led by Canada’s Brookfield and its US partner EIG.

The prospective buyers have entered into a scheme implementation deed to buy all of Origin’s listed capital, valuing its shares at $8.91 each compared to a closing price on Monday of $8.17.

The Origin board has unanimously recommended shareholders vote in favour of the scheme in the absence of a high bid, pending an independent expert report confirming it’s in the best interests of investors.

“Brookfield and EIG view Origin as critical to Australia’s energy transition and energy security,” they said in a statement on Tuesday.

“Both parties intend to use the acquisition to create separate platforms that will assist Australia’s transition to a net zero future.”

Their business plan for Origin contemplates at least $20 billion of additional investment in the next decade to construct up to 14 gigawatts of new renewable generation and storage facilities in Australia.

“This is expected to enable the retirement of one of Australia’s largest coal-fired power generation plants, Eraring, and will be undertaken with the highest regard for network reliability and security,” they said.

Origin first revealed in November it had been approached by the buyers.