Engie, Crédit Agricole to acquire Spanish renewables group Eolia Renovables

Engie SA and Crédit Agricole Assurances SA reached an agreement to acquire a 97.33% stake in Spanish renewable power producer Eolia Renovables de Inversiones SCR SA from Alberta Investment Management Corp.

The financial details of the transaction were not disclosed, but a recent report by Bloomberg News said the deal could be worth more than €2 billion.

The deal covers the ownership of 899 MW of operating assets in Spain, comprising 821 MW of onshore wind and 78 MW of photovoltaic solar, as well as a 1.2-GW pipeline of renewables projects.

The operating assets will be 40% owned by Engie and 60% owned by Crédit Agricole Assurances, while Engie will develop and build the pipeline of projects and provide a complete range of services for the full asset scope.

The acquisition boosts the presence of both companies in Iberia, after they combined in 2020 to acquire a portfolio of six hydroelectric power plants in Portugal from EDP - Energias de Portugal SA.

The deal will help Engie in its pursuit of 50 GW of renewables capacity by 2025, according to a Nov. 11 news release, and will contribute to Crédit Agricole Assurances' objective of doubling its investments in renewable energy to enable an installed capacity of 11 GW.

The acquired assets benefit from a regulated program that ensures predictability of returns over the next decade. The transaction is expected to be completed by the first quarter of 2022.