The Canada Pension Plan Investment Board (CPP Investments) announced a merger between Aera Energy, LLC, and California Resources Corporation (CRC), valuing Aera Energy at approximately $2.1 billion, including net debt. The transaction will see CPP Investments receiving about 11.2% of the merged company through newly issued common stock. This merger aims to create a leader in California's energy transition, focusing on producing low carbon intensity fuels and accelerating the state's decarbonization efforts. Bill Rogers, Managing Director and Global Head of Sustainable Energies at CPP Investments, highlighted the merger as an opportunity to enhance their investment in California's energy transition. IKAV, holding a 51% equity interest in Aera Energy, will also become a shareholder in the combined entity. The deal, expected to close in the second half of 2024, is subject to regulatory approvals and CRC shareholder consent. This initiative aligns with CPP Investments' focus on investments in energy transition, with the Sustainable Energies group's portfolio totaling C$31 billion in net assets as of September 30, 2023.