Abu Dhabi-based clean energy firm Masdar is reportedly close to finalising an acquisition of Saeta Yield SA, a Spanish renewable energy company owned by Brookfield Asset Management.
Media reports quoted sources familiar with the negotiations indicating that an announcement could come as early as this month.
Saeta Yield, which operates renewable energy assets in Spain and Portugal, is estimated to have a valuation of approximately €1.5 billion ($1.7 billion), according to local media reports.
The interest in clean energy investments has surged recently across various European markets, driven by declining valuations due to high interest rates and rising equipment costs. Spain, in particular, remains a significant player in the solar power sector.
Discussions between Masdar and Saeta are reported to be in advanced stages; however, there is potential for delays or complications.
Brookfield representatives declined to comment on the matter, while a spokesperson for Masdar noted that the company does not discuss “market speculation.” Efforts to reach Saeta for comment were unsuccessful outside regular business hours.
If the acquisition is completed, it would mark Masdar’s second major investment in Spain within the last two months.
Brookfield originally took Saeta private in 2018 after acquiring the company, which was first listed in 2015 amid a wave of investor enthusiasm for “yieldcos.”
The renewable energy firms are characterised by their ability to generate consistent dividends with relatively low capital expenditure.
In July, Masdar announced its intention to pursue further opportunities in Europe’s green energy market, indicating a willingness to consider both minority investments and controlling stakes.
The company recently agreed to acquire a 49.99% stake in a portfolio of 48 solar plants in Spain, owned by Endesa, a subsidiary of Italy’s Enel. The investment amounts to €817 million ($887 million) and encompasses a total capacity of 2 gigawatts.
Mazin Khan, Masdar’s CFO, stressed in a July interview with Reuters that the investments necessary to meet Europe’s ambitious green energy targets, combined with a stabilisation of asset prices that had surged during the low interest rate period, present significant opportunities in the region.
Masdar has made substantial investments in renewable energy projects globally, boasting a total capacity of approximately 20 gigawatts and a valuation exceeding $30 billion.
The company anticipates that Europe will play a crucial role in achieving its goal of reaching 100 gigawatts of capacity by 2030.
