Brookfield Acquires Majority Stake in Independent Renewable Producer Neoen

Brookfield, an investment firm, has signed a share purchase agreement to acquire approximately 53.12% of the shares of Neoen, an independent renewable energy power producer, at a price of €39.85 per share (~$42.71 per share).

Brookfield signed the agreement with French investment company Impala, Fonds Strategique de Participations managed by ISALT, Cartusia, Xavier Barbaro, and other shareholders. The closing of the block acquisition is subject to customary regulatory approvals including antitrust and foreign investment clearances.

Concurrently, Brookfield has also entered into a tender agreement with Bpifrance through its ETI 2020 fund. According to the agreement, the latter has undertaken to tender all the shares held in Neoen, representing 4.36% of Neoen’s share capital. Brookfield will launch the tender offer after the block acquisition is completed.

The regulatory approvals are expected to be obtained by Q4 2024 and the tender offer is expected to be launched in Q1 2025.

In March, Brookfield Renewable, a renewable power asset manager majority owned by Brookfield Asset Management, acquired a 50% stake in X-ELIO, a company specialized in developing, constructing, financing, and operating renewable energy projects, from private equity firm KKR. Following the transaction, Brookfield Renewable will own 100% of X-ELIO.

According to Mercom’s Q1 2024 Solar Funding and M&A report, a total of 21 solar M&A transactions were recorded in Q1 2024, the same amount as in Q4 2023, but about 22% lower compared to 27 solar M&A deals in Q1 2023.

Masdar (Abu Dhabi Future Energy Company PJSC), a UAE-based renewable energy project developer, recently, reached a definitive agreement with Gek Terna SA and other shareholders to acquire an initial 67% stake in European clean energy developer TERNA ENERGY, subject to regulatory approvals and other conditions.