French utility company Engie and insurance firm Crédit Agricole Assurances have agreed to acquire a 97.33% stake in Spanish renewable energy company Eolia Renovables.

The buyers will purchase the majority stake from Canadian institutional investment manager Alberta Investment Management Corporation.

The deal includes 821MW of onshore wind capacity, 78MW of solar photovoltaic (PV) capacity and a pipeline of renewable projects whose total capacity amounts to 1.2GW.

Crédit Agricole Assurances will own 60% of the operational assets, while the remaining 40% will be owned by Engie.

The financial details of the transaction have not been disclosed, but Reuters reported that its enterprise value is thought to be more than €2bn ($2.2bn).

Engie has agreed to develop the entire project pipeline and will be responsible for operation and maintenance (O&M), asset management, energy management and other services.

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By GlobalData

With this acquisition, Engie seeks to further strengthen its presence in the Spanish renewable market.

The deal is also intended to help the group achieve its target of installing 50GW renewable capacity by 2025.

Engie CEO Catherine MacGregor said: “This acquisition of Eolia Renovables, one of the largest renewable players in Spain, is fully in line with our strategy to accelerate our investments in renewables in our key markets while bringing our industrial and energy management expertise.

“The transaction will also allow us to support Spain in reaching its ambitious renewables and decarbonisation goals.”

Crédit Agricole Assurances CEO Philippe Dumont said: “This new investment alongside our partner Engie will help Crédit Agricole Assurances to strengthen its presence in the energy transition.

“This acquisition is a new step further in our commitment to helping fight climate change, contributing to our objective to double our investments in renewable energies and reach an 11GW installed capacity by 2025.”

The deal is expected to close by the first quarter of next year, subject to regulatory approvals.