Brookfield buys KKR out of Spanish renewables developer X-Elio

• Canada's Brookfield Renewable Partners LP (TSX: BEP.UN) will certainly take complete control of Madrid-based renewables developer X-Elio in a bid to further expand its global footprint.

Brookfield will obtain the 50% risk it does not own in X-Elio from US private equity company as well as joint venture partner KKR & Co Inc (NYSE: KKR), the latter claimed on Tuesday without revealing economic information. Unnamed sources have actually told the Financial Times that the transaction would value X-Elio at practically USD 2 billion (EUR 1.87 bn).

Started as Gestamp Asetym Solar in 2005, X-Elio concentrates on the growth of solar photovoltaic (PV), power storage as well as hydrogen projects. It expects to get to 3 GW of functional, under-construction, or ready-to-build assets by the end of 2023. The capacity is located in Spain, Italy, the US, Australia, Japan and Latin America.

Additionally, the business has over 10 GW of projects in its innovative near-term pipe.

Brookfield acquired a 50% stake in X-Elio in the summer of 2019 as well as since then has actually been operating X-Elio as a JV with KKR. The US personal equity group made its initial financial investment in the Spanish company in 2015 when it got an 80% risk and renamed the business.

Brookfield's follow-on investment is subject to customary problems, with the offer anticipated to be finished in the second half of the year.