Riding on a staggering, forecast-beating 78% leap in profits, BG, UK-based gas producer has made a bid for up and coming Australian power retailer- Origin Energy.

Origin Energy is the largest holder of coal seam gas resources in Queensland and holds the distinction of being Australia’s only vertically integrated energy company. It has effectively negated any losses in its traditional retail energy business with its oil and gas production, which makes up a quarter of its revenue. Already established as Australia’s second largest power retailer, the company holds 4,578 petajoules of proven, possible and possible gas reserves. This makes the acquisition perfect for UK’s BG as its helps BG take advantage of this fast growing Pacific LNG market.

BG has made a £6.2 billion offer to acquire Origin Energy. BG has explained that it will fund this amount with cash and debt. BG made 767 million pounds in the first quarter itself, buoyed by a tripling in profits due to LNG trade in Asia.

Shares in Origin Energy jumped nearly 40% post this announcement. The company is still to contemplate on this offer. The offer seems to be pretty on point and it remains unlikely that a competing offer will come up any time soon.

This purchase, if it works out, will greatly aid BG’s expansion plans. BG and partner Queensland Gas Co have planned to build a 3.8 billion pound single train LNG plant near the Queensland port of Gladstone and Origin’s resources could provide the infrastructure for a second plant.

Goldman Sachs and Gresham Partners are advisers to BG while Macquarie is adviser to Origin.