Masdar Acquires Saita From Spain's Brookfield For $1.2 Billion

Abu Dhabi Future Energy Company (Masdar) has taken a significant step by acquiring Saita Yield from Brookfield Renewables. The purchase, valued at approximately $1.2 billion, is yet to receive customary regulatory nods but is anticipated to be finalized by the end of 2024. This move marks a significant expansion in Masdar's portfolio and underlines its ambitious strategy to lead in the renewable energy domain.

Saita stands out as an independent developer, owner, and operator of renewable energy assets, boasting projects that cover the entire value chain of energy. The assets acquired in this deal include a diverse mix of mainly wind energy projects totaling 745 MW. This comprises 538 MW of wind assets and 63 MW of solar PV assets in Spain, alongside 144 MW of wind assets in Portugal. Not included in the acquisition are 350 MW of concentrated solar power projects, which will remain under Brookfield's management and operation.

"This investment underscores Masdar's commitment to implementing the leadership's vision to promote sustainable economic development and deploy renewable energy solutions and projects. This deal with Brookfield Renewables represents one of the largest renewable energy deals in Spain, and underscores Masdar's significant efforts to expand its activities and projects and implement its ambitious growth and expansion plans. It also supports the goal of tripling global renewable energy capacity, in line with the historic UAE Agreement reached at COP28," said Masdar Chairman, Mohamed Al-Jasser.

Dr. Sultan Ahmed Al Jaber, Minister of Industry and Advanced Technology and President of COP28, highlighted the strategic importance of this acquisition in advancing the European Union's climate neutrality goals by 2050 and emphasized the full investment in renewable energy ventures.

The acquisition not only amplifies Masdar's footprint in Spain, a key player in Europe's renewable energy arena, but also aligns with its commitment to the energy transition across Spain, Portugal, and the broader European region. Masdar aims to bolster its global portfolio to achieve 100 GW of total installed capacity by 2030. This ambition was further demonstrated through a recent partnership with Endesa, involving a 2.5 GW renewable energy portfolio in Spain, pending regulatory approval.

Mark Carney, Chairman and Chief Investment Officer at Brookfield, shared his satisfaction with the transaction, stating, "We are pleased to have concluded this important transaction with Masdar. As global leaders in clean energy, Brookfield and Masdar will continue to play a vital role in supporting the transition to a carbon-free economy."

Brookfield's strategic approach since acquiring Saita in 2018 focused on optimizing its capital structure and fostering growth through various means, including consolidation and sustainable development. This sale forms part of Brookfield's strategy to recycle capital to fuel further growth in the renewable energy sector.

Mohamed Jameel Al Ramahi, Chief Executive Officer of Masdar, expressed enthusiasm for the acquisition, emphasizing its significance for Masdar's European portfolio and its strategic implications for the Iberian market. "With a portfolio of 745 MW of wind power projects under development, and plans to develop 1.6 GW of projects in Spain and Portugal, Saita is an important addition to Masdar's European portfolio, especially following our recent partnership with Endesa for a 2.5 GW solar portfolio," he stated.

Echoing these sentiments, Connor Teske, CEO of Brookfield Renewable Partners, and Alvaro Perez de Lama, CEO of Saita, both acknowledged the growth and development achieved under Brookfield's stewardship and expressed optimism for Saita's future trajectory under Masdar's leadership.

To facilitate this transaction, Masdar engaged Citigroup Global Markets Limited as its transaction advisor, Linklaters for legal advice, UL as technical advisor, and KPMG for financial and tax advice. Brookfield, on the other hand, appointed Banco Santander and Société Générale as its transaction advisors, Aurea Mendes for legal counsel, G Advisory as technical advisor, and KPMG for tax advice.