ENGIE, Crédit Agricole Assurances To Buy 97.33% Stake Of Eolia Renovables In Spain

French natural gas and electricity supplier Engie SA (ENGQF.PK,ENGIY.PK) and Crédit Agricole Assurances announced Thursday an agreement to acquire a 97.33 percent stake of Eolia Renovables from Canadian institutional investment manager Alberta Investment Management Corp.

The acquisition of Eolia, a renewable power producers in Spain, covers the ownership and operation of 899 MW of operating assets, including 821 MW onshore wind and 78 MW photovoltaic, as well as a 1.2 GW pipeline of renewable projects.

Completion of the deal is expected by first quarter of fiscal 2022, subject to the fulfillment of certain conditions including merger control clearance from relevant competition authorities.

Operating assets will be 40 percent owned by ENGIE and 60 percent by Crédit Agricole Assurances while ENGIE will develop and build the pipeline of projects. ENGIE will provide a complete range of services for the full asset scope.

With the acquisition, ENGIE will contribute to avoiding 726,000 tons of CO2 emissions each year.

The deal will have a 0.4 billion euros net financial debt impact for ENGIE.

The acquisition is expected to allow ENGIE to boost its presence in the fast-growing Spanish renewables market and enable it to accelerate its growth in the sector and reach its target of 50 GW of renewable capacity by 2025.

Further, the deal will contribute to Crédit Agricole Assurances’ objective of doubling its investments in renewable energies to enable, over time, an installed capacity of 11 GW, i.e. the average energy consumption of four million households per year.

In Paris, Engie shares were trading at 13.20 euros, up 2.67 percent.

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