AGL Backs Out of Vocus Buy

AGL Energy Limited (AGL) has determined to cease undertaking due diligence on Australia-based telco operator Vocus and to withdraw its non-binding, indicative proposal to acquire Vocus.

Earlier this month, AGL was granted exclusive access to conduct due diligence on Vocus for a period of four weeks.

However, the energy generator and retailer company has now decided to withdraw its reportedly $3 billion bid on Vocus.

This is the second deal that fell through for Vocus, following the acquisition withdrawal by the Swedish private equity group EQT.

AGL managing director & CEO, Brett Redman, said: “We are no longer confident that an acquisition of Vocus at the proposed terms would represent sufficient certainty of creating value for AGL shareholders.”