Repsol Sells 25% Renewables Stake to EIP, Credit Agricole

Repsol Renovables, Spanish energy, and petrochemical company has approved the sale of 25% of its stake in the renewables business to the consortium formed by the French insurance company Credit Agricole Assurances and Switzerland -based Energy Infrastructure Partner (EIP) for €905 million (~$949 million).

This transaction values Repsol’s renewable business at €4.4 billion (~$4.6 billion), including debt and minority holdings.

The acquisition includes an investment commitment from the new partners, which the company says will support its goal of reaching 6 GW of installed capacity by 2025, bolstered by plans to enter new markets and add additional technologies such as offshore wind.

Under the terms of the shareholder agreement, Repsol will continue to control the business. Repsol’s current portfolio includes over 1.6 GW of renewable capacity and sizable development pipelines in Spain, the US, and Chile.

Josu Jon Imaz, CEO of Repsol, said: “Having reputable partners such as Crédit Agricole Assurances and EIP joining us in Repsol Renovables represents a validation of our renewable strategy, supports our ambition to be a key player in the energy transition, and fulfills our expectations in this important process.”

“Our target is to reach an installed capacity of 6 GW in 2025 and 20 GW in 2030. As partners, they share our strategic vision to grow in renewables, contribute additional expertise and underscore the value of our growth platform,” added Josu Jon Imaz.

This transaction is expected to close before year-end, subject to regulatory authorities’ approvals.

According to Mercom’s Q1 2022 Solar Funding and M&A Report, 29 solar M&A transactions were recorded in Q1 2022 compared to 43 in Q4 2021. In a YoY comparison, there were 20 solar M&A transactions in Q1 2021. In May 2022, TotalEnergies, a multinational integrated oil and gas firm, signed an agreement with Global Infrastructure Partners (GIP) to acquire a 50% stake in Clearway Energy Group (CEG), a clean energy developer in the U.S.