Renewable Energy M&A: ~$6bn Valuation, Repsol in Talks to Divest Stake in Renewable Energy Platform

Repsol is in early negotiations to sell a stake in its renewable energy unit following an unsolicited investor approach.

🤝 Deal Details:

– Up to 25% stake for sale

– Sale managed by Santander

– Valuation: €5.9bn for 100% of the unit

💼 PE Firms Seizing the Opportunity:

– The European market currently sees high interest from PE firms in renewable platforms

– Their ‘buy and hold long-term’ approach fits perfectly with the current market dynamics

– In line with major moves by KKR, Viessmann, Asterion, and EQT in Europe since 2023

– More recently, EIP finalized the purchase of a minority stake in Plenitude, the renewable platform of another European O&G firm, Eni.

🌍 Portfolio Details:

– Over 5 GW of solar, wind, and hydro projects

– Primarily in Spain, with a presence in Chile and the US

– Recently expanded US presence through acquisitions of Hecate Energy, ConnectGen, and Asterion Energies

🔍 Strategy:

– Capital from the sale supports its strategic plans through 2027

– Over €9bn planned investment in low-carbon and renewable energy

– Targeting 9-10 GW of installed renewable capacity by 2027

The above analysis is proprietary to Enerdatics’ energy analytics team, based on the current understanding of the available data. The information is subject to change and should not be taken to constitute professional advice or a recommendation.

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