Engie-Led Consortium to Buy Spanish Renewables Firm Eolia

(Bloomberg) -- A consortium led by French utility Engie SA agreed to buy Eolia Renovables de Inversiones SCR SA, a Spanish renewable power producer owned by Alberta Investment Management Corp., for an undisclosed sum.

Eolia develops, builds and operates wind farms and solar photovoltaic plants, with a portfolio of 899 megawatts, according to a statement on Thursday. The acquisition, made jointly with Credit Agricole Assurances, fits Engie’s strategy of expanding faster in renewables, and energy infrastructure such as district heating and electric-car charging networks. 

The deal, which was first reported by Bloomberg News, will also reinforce the French company’s presence in Spain, where Engie and financial partners bought a portfolio of hydropower assets from EDP-Energias de Portugal SA for 2.21 billion euros last year.

“This acquisition of Eolia Renovables, one of the largest renewable players in Spain, is fully in line with our strategy which is to accelerate our investments in renewables in our key markets,” Engie Chief Executive Officer Catherine MacGregor said in the statement.

Shares of the company rose 2.2% to 13.15 euros.

Eolia’s operating assets will be 40% owned by Engie and 60% by Credit Agricole Assurances, according to the statement. Engie will develop and build the pipeline of renewables projects, which amounts to 1.2 gigawatts of capacity. The sale price could have been above 2 billion euros ($2.3 billion), local media including the Expansion newspaper have reported.

Demand for renewable energy assets has soared in recent years, with infrastructure funds and strategic investors spending billions of dollars to gain exposure to the sector as governments promote low-carbon energy and crack down on fossil fuels to fight global warming. The value of deals involving alternative energy companies has more than doubled this year to an annual record of $92 billion, according to data compiled by Bloomberg.

To help fund its priorities, Engie announced last week that it that it agreed to sell its energy-services business Equans for 7.1 billion euros to French construction conglomerate Bouygues SA. The power and gas utility already sold most of its holding in French water company Suez SA a year ago, and an interest in its French gas-transmission network in July.

Aimco was advised by Cantor Fitzgerald and Linklaters, according to a separate statement

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