Brookfield buys KKR out of Spanish renewables developer X-Elio

March 21 (Renewables Now) - Canada’s Brookfield Renewable Partners LP (TSX: BEP.UN) will take full control of Madrid-based renewables developer X-Elio in a bid to further expand its global footprint.

Brookfield will acquire the 50% stake it does not own in X-Elio from US private equity firm and joint venture partner KKR & Co Inc (NYSE:KKR), the latter said on Tuesday without disclosing financial details. Unnamed sources have told the Financial Times that the transaction would value X-Elio at almost USD 2 billion (EUR 1.87bn).

Founded as Gestamp Asetym Solar in 2005, X-Elio focuses on the development of solar photovoltaic (PV), energy storage and hydrogen projects. It expects to reach 3 GW of operational, under-construction, or ready-to-build assets by the end of 2023. The capacity is located in Spain, Italy, the US, Australia, Japan and Latin America.

Additionally, the company has over 10 GW of projects in its advanced near-term pipeline.

Brookfield bought a 50% stake in X-Elio in the summer of 2019 and since then has been operating X-Elio as a JV with KKR. The US private equity group made its original investment in the Spanish firm in 2015 when it bought an 80% stake and renamed the business.

Brookfield’s follow-on investment is subject to customary conditions, with the deal expected to be completed in the second half of the year.

(USD 1.0 = EUR 0.933)