France-based insurance firm Crédit Agricole Assurances has reached an agreement with Italian energy company Edison to acquire a 49% stake in its Edison Renewables platform.
The deal values Edison Renewables at more than €2bn ($2.2bn).
Under the terms of the agreement, Crédit Agricole Assurances will help Edison Renewables increase its wind and solar photovoltaic (PV) capacity to 4GW by 2030.
Once the deal is completed, Edison will continue to fully consolidate its renewable business.
The business currently has 1.1GW of total capacity, which includes 1GW from wind farms.
Edison will also lead the development of renewable energy assets in line with the decarbonisation targets set out in the Italian National Integrated Energy and Climate Plan and European Green Deal.
The company aims to support Italy’s energy transition efforts through the transaction.
Edison CEO Nicola Monti said: “We’re proud to announce a long-term partnership with a player who recognises and supports our business plan in renewables.
“Through this collaboration, we speed up our investments in Italy by implementing the robust pipeline of projects under development and contributing to the country’s energy transition.”
By acquiring the stake in Edison Renewables, Crédit Agricole Assurances has become the business’ long-term financial partner.
The deal is expected to close by the end of this year.
Crédit Agricole Assurances CEO Philippe Dumont said: “Fully in line with Crédit Agricole Group’s commitments in favour of the climate, this new partnership and investment will help Crédit Agricole Assurances to strengthen its presence in the energy transition.
“This acquisition will also contribute to our objective to increase our investments in renewable energies and reach an 11GW installed capacity by 2025.”
Last month, Engie and Crédit Agricole Assurances agreed to acquire a 97.33% stake in Spanish energy company Eolia Renovables.
The stake will be bought from Canada-based institutional investment manager Alberta Investment Management Corporation.