Brookfield in Talks to Acquire Neoen in €6.1 Billion Deal

Brookfield and Temasek are in talks to acquire Neoen, a significant player in the global renewable energy sector, for €6.1 billion. The deal involves Brookfield’s second global energy transition fund and Temasek purchasing a 53.32% stake in Neoen from various investors, including the company’s chairman and CEO Xavier Barbaro, Impala, and a consortium of French insurers supporting the Fonds Stratégique de Participations (FSP).

If successful, the offer of €39.85 per share would value Neoen at €6.1 billion, with an additional all-cash mandatory tender offer for outstanding convertible bonds and remaining shares. Brookfield’s renewable division, the largest investor in the Brookfield Global Transition Fund II, plans to contribute up to €500 million towards the acquisition, using available liquidity for financing.

Established in 2008 in France, Neoen specializes in solar, wind, and storage energy projects. Some of their notable ventures include the 300 MWp solar farm in Cestas, France; the 404 MW wind farm in Mutkalampi, Finland; the 375 MWp El Llano solar project in Mexico; as well as the Hornsdale Power Reserve and Victorian Big Battery storage installations in Australia.

Connor Teskey, CEO of Brookfield’s renewable power and transition division, highlighted that acquiring Neoen would provide access to key renewable markets and expertise in battery storage. The goal is to strengthen Neoen’s position as a global leader in renewable energy and accelerate its growth trajectory.

The proposed acquisition, representing a 27% premium to Neoen’s last closing stock price, has been positively received by Neoen’s board. If successful, this move would significantly enhance Brookfield and Temasek’s presence in the renewable energy sector, with potential for further expansion and innovation in the field.