Masdar has embarked on a streak of acquisitions in the Iberian Peninsula, finalizing two acquisitions in Spain and reportedly lining up another one in Portugal. The acquisitions come as part of the renewables major’s expansion push, targeting 100 GW of global capacity by 2030.

Here’s a rundown:

#1- A solar PV project in Spain’s Valencia: Masdar’s Iberian platform Saeta Yield has closed the acquisition of a 234 MW Valle Solar PV project with an undisclosed investment ticket, according to a press release issued on Thursday. The project — located in the Valencia region — could see a potential addition of a 259 MW battery energy storage system.

About the plant: The solar plant — which was marketed by a joint venture between Genia Solar Energy and Solar Ventures — will be located in the municipalities of Ayora, Jarafuel and Zarra. Operations are set to begin in the first half of 2027.

Advisors: Finegreen, EY, Watson Farley & Williams, and G-advisory advised Solar Ventures and Genia Solar in the transaction, while Solida, Broseta, and Pérez-Llorca were Saeta’s advisers.

REMEMBER- Masdar finalized its EUR 1.2 bn acquisition of Spanish renewables firm Saeta from Brookfield Renewable in December, adding then 1.6 GW of a renewables pipeline to its portfolio.

#2- A minority stake in Spanish Endesa’s solar plants: UAE’s Renewables giant Masdar inked an agreement to acquire a strategic minority stake of 49.99% in four solar assets owned by Spanish utility firm Endesa for a cash consideration of EUR 184 mn, according to a joint statement issued on Monday. The target assets boast a capacity of 446 MW, and have an enterprise value of EUR 368 mn. The transaction is subject to regulatory approvals. Reuters broke the news last week.

Where’s the money coming from? The acquisition will be partially funded via acquisition financing from BNPP, Santander, Intesa Sanpaolo, ADCB, and FAB. Lenders were advised by Ashurst. This implies that the part of the purchase will be financed through Masdar’s internal resources.

Not the last dance: Last month, Masdar and Endesa’s owner Enel Group inked an MoU to explore potential renewable energy opportunities in Italy, Spain, and Germany, and other markets, the statement reads.

ADVISORS- Masdar enlisted BNPP as its advisor, Linklaters as legal advisor, UL as technical advisor, and PwC as its tax advisor.

#3- Up to 600 MW assets in Portugal are also in the mix: The UAE player is also reportedly looking to acquire an undisclosed stake in TotalEnergies’ Portuguese renewable assets, Reuters reported last week, citing three sources it says have knowledge of the matter. The potential purchase would take place through Masdar’s subsidiary Saeta Yield, one source said. TotalEnergies has about 600 MW of installed renewable capacity in Portugal, the newswire said.

Part of a long line of European acquisitions: Masdar finalized a 49.99% stake acquisition in EGPE Solar — an Endesa subsidiary with a 2 GW capacity — for EUR 817 mn and an equity value of EUR 280 mn last December. Last year also saw it bolster its European portfolio by acquiring 1.6 GW worth of renewables through the acquisition of Spanish renewables firm Saeta Yield, in addition to a 70% stake in Greece’s Terna Energy, and a 49% stake in the UK’s 3 GW Dogger Bank. Across the pond, it also bought 50% of Terra-Gen Power Holdings, a US renewable energy producer.

MORE FROM THE UAE-

#1- Tabreed is said to be eyeing Multiply Group’s district cooling unit Pal Cooling Holding, Reuters reported on Tuesday, citing two people it says are familiar with the matter. Bloomberg reported earlier this month that ADX-listed investment firm Multiply Group is mulling the sale of Pal in a transaction that could value the unit at USD 1 bn. There’s no publicly available information about how much Tabreed is looking to acquire in Pal.

ADVISORS- Tabreed reportedly tapped Citi for the potential acquisition, while Standard Chartered is said to be the sell-side advisor.

REMEMBER- Tabreed also acquired an 80% stake in Emaar Properties’ district cooling unit in 2020.

#2- Abu Dhabi’s Taqa is reportedly in talks with Spanish gas producer and renewables player Naturgy’s largest shareholder to revive acquisition talks, Bloomberg reported on Monday, citing sources familiar with the matter. Taqa Chairman Mohamed Hassan Alsuwaidi met with an executive of Naturgy’s shareholder, Criteria Caixa, in Spain. Criteria Caixa currently owns a 26.7% stake in the company.

Refresher: Taqa had pulled the plug on talks with Criteria Caixa in June last year, after speculations that the potential acquisition could meet resistance amid a rising wave of protectionism in the EU, which would have prompted the Spanish government to negotiate maintaining a stake. The company was then reportedly eyeing a 40% stake in the firm, which would have required it to launch a mandatory tender offer (MTO) for 100% of the company, since Spanish law dictates that any offer to buy more than 30% of a company automatically triggers an MTO requirement.

The same sticking points remain: One of Bloomberg’s sources said that Naturgy’s shareholders are open to a sale, provided it’s only of a minority stake, and the Algerian government — which at the time of the initial talks was considering blocking the transaction to protect its stake in the company — is on board. Naturgy owns two pipelines that carry fuel from Algeria to Spain.

#3- Emirati investors are among those in talks to buy up to 30% of Canadian mining firm Hudbay Minerals ’ flagship Copper World project in Arizona within six months, Bloomberg reported last week. Saudi Arabia’s Manara Minerals Investment Company and Japanese trading houses are also interested in an acquisition, CEO Peter Kukielski told Bloomberg last November.

The mine: The Copper World project mine had proven reserves of 385.1 mn as of 1 January 2024, according to Hudbay’s website, and it expects the 85k metric tons per year capacity project to up its annual copper production by over 50%, Bloomberg reported.

This comes amid increasing Emirati interest in mining and critical minerals, with ADQ and Orion launching a USD 1.2 bn critical mineral-focused JV, UAE-based Ambrosia Investments acquiring 50% of Allied’s Mali mine operations, and state-owned IRH eyeing a stake in Alphamin Resources.

OTHER REGIONAL M&A UPDATES-

Aramco completed the acquisition of a 50% stake in Jubail-based Blue Hydrogen Industrial Gases Company (BHIG) from its sole owner Air Products Qudra (APQ), according to a joint statement released on Monday. BHIG is expected to use Aramco’s carbon capture and storage (CCS) hub in Jubail to commence commercial production. The size of the transaction wasn’t made public. It’s noteworthy that APQ is a joint venture between US industrial gas supplier Air Products and local energy startup Qudra Energy.

REFRESHER- The state-owned oil kingpin inked the final agreements for the transaction in July 2024, and expects its investment in BHIG to help create a lower-carbon hydrogen network in the Eastern Region that would serve local and regional customers in the refining, chemical, and petrochemical industries. It also said it will have the option to offtake hydrogen and nitrogen from BHIG.

What they said: “Aramco’s investment in BHIG is expected to contribute to the development of a hydrogen network in the Kingdom of Saudi Arabia’s Eastern Province. This network, along with our CCS hub in Jubail, can help us capitalize on emerging opportunities both domestically and globally to reduce carbon emissions, support growth, and diversify our energy portfolio,” said Ashraf Al Ghazzawi, Aramco executive vice president.

Market reax: Aramco’s share price rose 0.38% to SAR 26.75 apiece at yesterday’s close, with 7.54 mn shares traded in volume, according to market data.

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