Big names such as Uber, KKR, Canadian Solar also in this roundup
Deal: Brookfield to buy Neoen in one of this year’s largest take-private deals in Europe
Value: $9 billion (€6.1-billion)
This week saw some of the largest deals in the market. This includes Brookfield’s $9 billion (€6.1-billion) acquisition bid for France’s Neoen, which is set to be one of the biggest take-private deals in Europe this year. Also in this week’s deals roundups are prominent names such as Uber, KKR, and Canadian Solar.
Brookfield to acquire France’s Neoen in $9 billion take-private deal
Brookfield Asset Management Ltd. is in exclusive talks to acquire a 53.32 percent stake in French renewable energy provider Neoen, from Impala, the Fonds Stratégique de Participations (FSP), Cartusia and Xavier Barbaro, and other shareholders, with a bid that values the company’s shares at approximately $9 billion (€6.1-billion). Once completed, the deal is set to be one of the largest take-private deals in Europe so far this year.
Latest News
Clifford Chance LLP is serving as the legal counsel to Brookfield, with BNP Paribas and Société Générale as financial advisors. Bredin Prat is serving as the legal counsel to Neoen, with Bank of America as the exclusive financial advisor.
“Under Impala’s sponsorship, Neoen has built one of the world’s greatest renewable energy development platforms,” said Brookfield Renewable Power & Transition CEO Connor Teskey. “Acquiring Neoen further strengthens Brookfield’s global scale, while diversifying into key renewables markets and adding expertise in battery storage technology. We look forward to partnering with management to scale-up the business to meet the growing demand we are seeing for clean power.”
“After 15 years of successful and profitable growth with Impala as our key shareholder, we are thrilled to open a new chapter in Neoen’s history, with the arrival of Brookfield as our new majority shareholder,” said Neoen’s Chairman and CEO Xavier Barbaro. “We look forward to developing a strong relation with Brookfield that will take Neoen to the next phase of its growth story, further consolidating its leadership position as an independent producer of renewable energy, and one of the most dynamic globally.”
The deal is expected to close during the first quarter of 2025, subject to legal and regulatory conditions.
KKR to buy Emera’s $1.19 billion stake in Labrador Island Link
Emera Inc. (Emera), an international energy and services company, and KKR, a New York investment firm, have entered into an agreement where KKR will acquire Emera’s shares in the Labrador Island Link (LIL) for $1.19 billion. The transaction value consists of $957 million in cash and $235 million for assuming Emera’s obligation to fund the remaining initial capital investment.
Officially commissioned in 2023, the LIL is a 1,100 km high voltage transmission line vital to Atlantic Canada as it delivers renewable energy to Newfoundland, Nova Scotia, and beyond. Emera was an investor in the LIL alongside Newfoundland and Labrador Hydro (NL Hydro).
TD Securities is acting as the exclusive financial advisor to Emera in connection with the transaction while Scotiabank is acting as the exclusive financial advisor to KKR.
Emera CEO Scott Balfour said, “With this transaction, we look forward to a new relationship with KKR while remaining committed to our partnership with NL Hydro.”
KKR Partner and Head of North American Infrastructure Brandon Freiman said, “KKR has a long history of investing in stable, reliable and essential transmission assets like the Labrador Island Link, and we look forward to beginning this long-term strategic partnership with Emera and NL Hydro to deliver clean energy across the region.”
“The LIL is a strategic asset for Newfoundland and Labrador as it continues down the path of building its clean energy future,” said NL Hydro CEO Jennifer Williams. “This new arrangement is evidence of the quality of the LIL and the critical role that it plays to harness clean, renewable energy and deliver it to our customers here in Newfoundland and Labrador across the region and beyond.”
The deal is expected to be completed on or about June 4, 2024.
Canadian Solar unit secures $1.9 billion financing to expand European renewable projects
Recurrent Energy, a subsidiary of Canadian Solar, has secured a multi-currency revolving credit facility valued at up to $1.9 billion (€1.3 billion) with ten banks to fund the construction of renewable energy projects across several European countries.
The funds will enable Recurrent Energy to develop and construct solar and battery energy storage projects in Spain, Italy, the United Kingdom, the Netherlands, France, and Germany. Initially, it will support the construction of nearly 1 GW of solar capacity, with the majority allocated to Spain and the rest to the United Kingdom.
Banco Santander CIB served as the global coordinator and sole bookrunner for this agreement. ING acted as the Sole Issuing Bank and Sole Sustainability Coordinator, overseeing compliance with Environmental, Social, and Governance (ESG) criteria for green financing. The facility also includes ABN AMRO, BBVA, Banco Sabadell, Rabobank, HSBC, Intesa Sanpaolo, Natwest, and NORD/LB.
Recurrent Energy acted through its in-house legal team, led by its senior director and general counsel EMEA, Antonio Adami, with the support of legal counsel Juan Jose Adan Martin and senior legal counsel Miguel Martin Ortega.
Clifford Chance LLP served as legal counsel to Recurrent Energy with a team led by partner José Guardo, together with associates Álvaro Cabaleiro, María González and Marta Ruiz (Spanish law), as well as senior associate James Rodier and associate Emma Price (English law).
Watson Farley and Williams LLP advised the lenders with a team led by partner Rodrigo Berasategui and included senior associate Laura Fontán and associates Antón Ramil and Sara Estradera.
Recurrent Energy CEO Ismael Guerrero said, “This agreement solidifies Recurrent Energy’s growth strategy and our transformation into one of the world’s leading independent renewable energy producers and developers.”
Aris Mining acquires majority interest in Colombia’s Soto Norte gold-copper project
Vancouver-based Aris Mining Corporation agreed to acquire an additional 31 percent joint venture interest in the Soto Norte gold-copper project in Colombia from MDC Industry Holding Company LLC (Mubadala).
This acquisition increases Aris Mining's stake to 51 percent. In exchange, Aris Mining will issue 15,750,000 shares to Mubadala, representing approximately 9.9 percent ownership, with an additional 6,000,000 shares to be issued upon receipt of an environmental license. The current market value of the 21,750,000 shares to be issued to Mubadala is $121.5 million (US$90 million).
Dentons is acting as legal counsel to Aris Mining. McCarthy Tétrault is acting as legal counsel to Mubadala with a team led by Shawn Doyle, that included Roger Taplin, Peter Quon, Jenna Clark, and Rebecca Ferguson (Corporate) and Drew Morier (Tax).
“As the only mining company with operational experience to own and operate Soto Norte, we believe a new, smaller-scale development plan with a reduced environmental footprint is the right path forward,” said Aris Mining CEO Neil Woodyer. “Aris Mining also plans to incorporate processing solutions for contract mining partners into the design and development of Soto Norte, following the successful partnership model developed at our Segovia Operations in Colombia.”
The deal is expected to close in June 2024, subject to customary conditions and regulatory approvals.
Lightspeed Commerce to integrate Uber Direct, Uber Eats marketplace into platform
Lightspeed Commerce Inc., the one-stop commerce platform empowering some of the biggest names in the restaurant and hospitality sector, such as Taverne Atlantic, Alinea Group, and Big Mamma, has partnered with Uber to directly integrate Uber's white-label delivery facilitation service, Uber Direct and Uber Eats marketplace, into Lightspeed’s platform.
“The restaurant industry continues to face significant challenges with staffing and increasingly narrow revenue margins,” said Lightspeed President JD Saint-Martin. “This partnership is an opportunity to provide our customers some relief in the form of a world-class delivery network and cost savings plan. We believe this is only the first step in a long-term relationship with Uber.”
“On-demand delivery is now a core expectation for consumers, with 75 percent of them expecting express delivery as an option, and merchants are taking note,” said Head of Uber Direct for the US and Canada Bernie Huddlestun. “We're proud to partner with Lightspeed to offer restaurants solutions that meet their customers' needs and encourage repeat orders while giving restaurants the flexibility to offer seamless delivery experiences in the way that works best for growing their business.”
The integration is currently available to Lightspeed Restaurant customers in North America, with additional markets to follow.