Abu Dhabi Future Energy Company, Masdar announced the proposed acquisition of Saeta Yield (Saeta) from Brookfield Renewable for an estimated enterprise value of $1.4 billion.
The acquisition will include Masdar buying out the stakes of Brookfield’s institutional partners as well.
The acquisition deal, billed as one of the largest in the renewable energy sector in Spain, is expected to be closed towards the end of this year, subject to mandatory regulatory approvals.
Masdar expands in Spain
Saeta is a leading Spanish independent developer, owner and operator of renewable power assets with capabilities across the entire value chain.
The acquisition deal consists of a portfolio of 745 megawatts (MW) of predominantly wind assets – 538 MW of wind assets in Spain, 144 MW of wind assets in Portugal and 63 MW of solar PV assets in Spain – and includes a 1.6 gigawatt (GW) development pipeline.
It will, however, have a regulated portfolio of 350 MW of concentrated solar power assets, which Brookfield will retain and continue to operate, Masdar said.
Dr Sultan Al Jaber, UAE Minister of Industry and Advanced Technology, Chairman of Masdar and COP28 President, said the landmark deal with Brookfield Renewable builds on Masdar’s strong growth story, demonstrating its commitment to the EU’s wider net zero by 2050 target and unlocking new capacity.
“Matching words with actions, Masdar is further accelerating its ambitious growth plans, as well as supporting the delivery of the UAE Consensus ratified at COP28, to triple renewable energy capacity by 2030, enabling a just, orderly and equitable energy transition,” Al Jaber said.
Mark Carney, Chair and Head of Transition Investing at Brookfield said the investment firm is thrilled to conclude this important transaction with Masdar.
“As global leaders in clean energy development, Brookfield and Masdar will continue to be important players to accelerate the journey towards a net-zero economy,” he said.
The sale is in line with Brookfield Renewable’s asset rotation strategy to recycle capital to fund growth activities.
Since acquiring the business in 2018, Brookfield has worked closely with Saeta’s management team to successfully execute a business plan focused on divesting non-core assets, optimising its capital structure, and positioning the business for growth through hybridisation, repowering, greenfield development and accretive tuck-in opportunities.
The acquisition will further help Masdar to further cement its position in the Spanish market, one of Europe’s largest renewable markets.
The deal is also expected to advance the UAE company’s growth plans in the region as it targets a global capacity of 100 GW by 2030.
Recently, the Abu Dhabi-based company also announced an agreement with Endesa to become a partner for 2.5 GW of renewable energy assets in Spain, subject to regulatory approvals and other conditions.
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