Brookfield Asset Management will fully control Spanish solar developer X-ELIO. renewable energy sector.
The Canadian group has bought the remaining 50% stake in the Spanish solar group from US private equity firm KKR, the companies said.
The deal valued X-ELIO shares at nearly $2 billion, according to people familiar with the matter. The investment comes as Brookfield is raising funding to target companies that will benefit from the transition to renewable energy.
Ignacio Paz-Ares, Head of European Renewable Power and Transitional Investments at Brookfield Renewable, said:
In addition to the region’s decarbonization goals, “I think that is compounded by the energy security goals, and that governments are putting more and more focus on promoting renewable energy deployments.” Pasuares added.
Brookfield’s decision to bet on Europe’s renewable energy sector comes as the EU faces threats from the $369 billion in green tax incentives and subsidies provided in the US under President Joe Biden’s Inflation Reduction Act. is done when
Volkswagen, BMW and Enel are among the major European companies reviewing their renewable investment plans within the bloc in light of the IRA.
Brookfield previously raised $15 billion in funds co-led by former Bank of England Governor Mark Carney. The fund has supported the development of renewable energy, along with technologies such as nuclear power and waste recycling. The group aims to raise his $17 billion from investors by launching his second fund aimed at shifting away from fossil fuels, according to one of his people.
Brookfield fully manages Madrid-based X-ELIO through Brookfield Renewable. Brookfield backs similar companies in the US and acquired Scout Clean Energy and Standard Solar last year.
Founded in 2005, X-ELIO specializes in the construction, financing and operation of solar power plants, storage and hydrogen projects. Besides Spain, the group is also active in the USA, Italy, Australia, Japan and Latin America.
KKR first invested in X-ELIO in 2015, acquiring 80% of the company, giving the Spanish group an enterprise value of around $1 billion. Brookfield joined in his 2019, acquiring a small number of investors and a portion of his KKR holdings to acquire his 50% stake.
After terminating its investment in X-ELIO, KKR will retain its exposure to renewable energy through several investments, including French renewable energy producer Albioma and British company ContourGlobal.
The transaction is expected to close later this year.
https://www.ft.com/content/77f058a7-4953-40fd-a6c4-54fc5eb37755 Brookfield to buy KKR stake in Spanish solar company