State oil giant Saudi Aramco is interested in taking a minority stake in the renewable energy division of Spanish oil company Repsol, Spanish newspaper Expansion reported.
The move comes as Repsol is looking for investment partners for wind and solar farms, in line with its strategy to transition to renewable energies and low-carbon businesses.
Repsol Renewables, which owns the assets, is valued at 5.9 billion euros including debt, a UBS research note from April was quoted as saying by Reuters.
Saudi Aramco's interest was first reported by a Spanish newspaper, which suggested the Saudi company was particularly focused on Repsol's renewable assets in the United States.
Repsol has begun talks to sell a stake in its renewable energy business, although no formal proposal has been made.
This follows an unsolicited investment proposal, with Santander appointed as adviser to the sale.
Previously, Repsol sold a 25% stake in its renewable energy business to Credit Agricole and Energy Infrastructure Partners, raising 905 million euros.
Neither Saudi Aramco nor Repsol declined to comment on the matter.
Announcing its first-quarter 2024 results last month, the company said it planned net investments of 3-4 billion euros to organically develop its global portfolio of renewable energy projects.
In May 2023, El Confidencial newspaper reported that Repsol planned to sell a 49% stake in a renewable energy project in Spain.
The company's renewable energy portfolio in Spain exceeds 3.2GW, with around half of that capacity currently in operation.
Repsol's goal is to increase its global installed capacity to 6GW by 2025 and to 14GW by 2030.
Repsol's renewable energy operations are spread across Spain, Portugal, Italy, Chile and the U.S. To support these goals, the European Investment Bank last July provided Repsol with a €575 million loan for the development of wind and solar projects in Spain, which will bring in an additional 1.1GW of capacity.
“Saudi Aramco reportedly considering stake in Repsol's renewable energy business” was originally created and published by Power Technology, a brand owned by GlobalData.
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