Brookfield reaches majority stake agreement in Neoen

A subsidiary of Canadian global asset management company Brookfield, Brookfield Renewable Holdings, has reached agreement for a majority 53.32% stake in France-headquartered renewables developer Neoen, with a tender offer for the remaining shares to own the company outright, valued at $10 billion (USD 6.6 billion).

Neoen has over 4 GW of renewable energy assets in operation or under construction in Australia and has invested more than $4 billion in the Australian market, with the intention of reaching 10 GW by 2030.

The company completed a landmark renewable energy portfolio financing of over $1.1 billion, announced February 2024, for a 1.5 GW portfolio including solar assets in South Australia, NSW, Queensland and Victoria, and the Collie Battery Stage 1 under construction in Western Australia.

Neoen Chairman and Chief Executive Officer Xavier Barbaro said after 15 years of successful and profitable growth the company welcomes the arrival of Brookfield as a new majority shareholder.

“We look forward to developing a strong relation with Brookfield that will take Neoen to the next phase of its growth story, further consolidating its leadership position as an independent producer of renewable energy, and one of the most dynamic globally,” he said.

“Our Board of Directors fully welcomes the transaction and sees Brookfield as a partner of choice to preserve the structure and identity of Neoen in the best interests of its employees and its stakeholders.”

One of the world’s largest investors in renewable power and climate transition assets, Brookfield owns almost 33 GW of generating capacity across five continents, including 211 solar facilities with an installed capacity of 7 GW, 5.1 GW of distributed energy and storage, plus hydro and wind assets.

It recently agreed to supply Microsoft with over 10.5 GW of renewable power, the world’s largest such power supply deal.

Brookfield Asset Management Renewable Power and Transition Chief Executive Officer Connor Teskey said Neoen has built one of the world’s greatest renewable energy development platforms.

“We’re excited to build on Brookfield’s expertise, track-record and access to capital to further accelerate Neoen’s growth while preserving its culture and identity,” he said.

“Acquiring Neoen further strengthens Brookfield’s global scale, while diversifying into key renewables markets and adding expertise in battery storage technology. We look forward to partnering with management to scale-up the business to meet the growing demand we are seeing for clean power.”

Founding investment company Impala president Jacques Veyrat said the company is delighted to sell the control of Neoen to Brookfield describing it as a responsible actor and world leader in the renewable energy market .

“Impala created Neoen 15 years ago and have since then supported every stage of its development in France and then internationally, with an outstanding success in Australia. With the financial backing of this new shareholder and the talent of Xavier Barbaro and his teams, Neoen will be able to continue its growth trajectory.”

Brookfield attempted to purchase Origin Energy in 2023 but the bid was rejected by shareholders.

From pv magazine Australia