HONG KONG, Mar 9 (AP) -- CLP Holdings Ltd., Hong Kong's biggest electricity provider, said Wednesday it has signed an agreement to buy some Australian energy assets from Singapore Power for 2.13 billion Australian dollars (US$1.7 billion; euro 1.3 billion).

CLP Power Australia Energy Holdings Pty Ltd., a unit of CLP Holdings, will buy the merchant energy business division of SPI Australia Group, a unit of Singapore Power, the firm said.

The division is the fifth largest energy retailer in Australia. It sells gas and electricity to over 1 million customers in Victoria, New South Wales, South Australia and Queensland.

"The acquisition is in line with CLP's objective of building a diversified and integrated energy business in Australia, focusing on electricity and gas retail," CLP Holdings said in a statement.

The company said the acquisition will be financed partly by internal funds and partly by a new corporate facility.