Endesa Strengthens Renewable Portfolio with Acciona Hydroelectric Acquisition
Deal News | Nov 18, 2024 | Finance Community IT - 1 Corporate M&A
Endesa, part of the Enel Group, has entered into an agreement with Corporación Acciona Energías Renovables to acquire the entire share capital of Corporacion Acciona Hidráulica (CAH) for €1 billion. European financial advisory firm Rothschild & Co. acted as an advisor in this significant transaction aimed at consolidating Endesa's renewable energy footprint in Spain. The acquisition includes 34 hydroelectric plants located in the north-east of Spain, with a total installed capacity of 626 MW that generated approximately 1.3 TWh in 2023. This strategic move is part of Enel's broader ambition to enhance its position in the global renewable energy market by increasing the portion of its sales portfolio covered by renewable production. Upon completion, anticipated in early 2025 pending relevant antitrust and government foreign investment approvals, Enel's installed hydroelectric capacity in the Iberian Peninsula will exceed 5.3 GW, contributing to a total renewable capacity of about 10.7 GW. The acquisition aligns with Endesa's development plans and will be funded by current cash flows.
Sectors
- Renewable Energy
- Investment Banking
Geography
- Spain – The hydroelectric plants being acquired are located in Spain, and Endesa's operations are prominent in this geography.
- Italy – Enel, the parent company of Endesa, is based in Italy, making this a key geographic component of the article.
Industry
- Renewable Energy – The article focuses on the acquisition of hydroelectric plants, which are a key part of the renewable energy sector.
- Investment Banking – Rothschild & Co's role as an advisor highlights the importance of financial advisory services in M&A transactions.
Financials
- €1 billion – The enterprise value for the acquisition of CAH as agreed upon in the transaction.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| Endesa (Enel) | Bidding Company | Company | A major Spanish energy company, part of the Enel Group, acquiring hydroelectric assets from Acciona. |
| Corporación Acciona Energías Renovables | Selling Company | Company | A company within the Acciona Group selling its entire share capital in Corporación Acciona Hidráulica. |
| Corporación Acciona Hidráulica (CAH) | Target Company | Company | The entity being acquired, consisting of hydroelectric plants in north-east Spain. |
| Rothschild & Co. | Financial Advisor | Company | Provided advisory services to Endesa/Enel in the acquisition process. |