EQT and Norges team up in bid for Acciona Energia

EQT, a leading infrastructure investor, and Norway’s sovereign wealth fund Norges Bank Investment Management have joined forces in a bid to acquire Spanish renewable energy company Acciona Energia, according to a report by Spanish newspaper Expansión. The consortium, spearheaded by EQT’s infrastructure arm, is vying against French private equity firm Ardian for control of the renewable energy firm.

EQT is anticipated to control approximately 75% of the bidding entity, while Norges Bank Investment Management will hold the remaining 25%, reported Expansión. Acciona Energia, valued at around €11.9 billion ($13.7 billion), including debt, presents a substantial European infrastructure opportunity. The acquisition process has progressed beyond the initial non-binding offer stage, with Acciona Energia facilitating meetings between management and top bidders.

Potential purchasers are anticipated to present their bid prices in October, following which Acciona Energia's parent company will select a preferred bidder and commence exclusive negotiations. A favorable deal is expected to involve a transaction that would take Acciona Energia private and remove it from the stock market, as per Expansion.

Ardian is considering the opportunity through its infrastructure arm but has not yet established a consortium. Given the transaction's magnitude, the private equity firm is likely to seek co-investors if it proceeds with a bid. Acciona is collaborating with Citi and Goldman Sachs as it explores strategic alternatives for the renewable energy subsidiary.

Acciona's Chairman, Jose Manuel Entrecanales, has previously indicated that a complete disposal of the business is "extremely unlikely," while discussing alternatives such as selling a minority stake. Acciona Energia's shares surged 4.1% during trading on September 15 following the report, while parent Acciona climbed 2.9%. EQT shares, on the other hand, declined by 3.6%.