France’s Engie, Credit Agricole to buy Spain’s Eolia Renovables

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FILE PHOTO: The logo of French gas and power group Engie is seen in Bouguenais near Nantes, France October 5, 2020. Businesshala / Stephen Mahe
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PARIS/MADRID (Businesshala) – Gas and electricity conglomerate Angie and French bank Credit Agricole said on Thursday they have agreed to buy Spanish renewable energy conglomerate Eolia Renovables.

The deal highlights the growing investor appetite for renewable energy assets in Southern Europe, leading to higher market valuations in the region.

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The French firms said in a joint statement that they have agreed to buy 97.33% of Aeolia Renovables’ capital from Canadian investment fund Alberta Investment Management Corporation. He did not disclose the financial details of the purchase.

But a source familiar with the matter told Businesshala that the enterprise value of the deal was just above 2 billion euros.

Former French gas monopoly Engie this month announced the sale of 7 billion euros ($8 billion) to technical services group Equines to Boyegs and said it would use the proceeds of the asset sale to invest in renewable energy.

A large part of Eolalia’s assets were built under previous Spanish regulations that still guaranteed a fixed long-term rate for the electricity they generated.

Angie, whose shares were up 2.6% in early market trading in Paris, will own 40% of Aeolia’s assets and Credit Agricole 60%.

($1 = 0.8648 Euro)

Reporting by Gwenelle Barzik and Isla Binny; Written by Michelle Rose; Editing by David Goodman and Alexander Smith

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