1. Energy Capital Partners (ECP) is in advanced discussions to acquire UK-based renewable energy developer Atlantica Sustainable Infrastructure.
2. Atlantica’s portfolio includes energy production from wind, solar, and natural gas sources in the US, Europe, South America, and Africa.
3. The trend of acquisitions in the alternative energy sector continues, with companies like KKR also making moves to acquire renewable energy producers.
Energy Capital Partners is currently in advanced discussions to acquire Atlantica Sustainable Infrastructure, a UK-based renewable energy developer. The potential acquisition is expected to be finalized in spring or early summer 2024, with Atlantica’s shares experiencing an 18% decline in US trading between February and May 2024, resulting in a market capitalization of $2.5bn. The company’s valuation, including debt, stands at $7bn, and its asset portfolio includes energy production from wind, solar, and natural gas sources across regions like the US, Europe, South America, and Africa.
Atlantica initiated a strategic review process in February 2023 to enhance shareholder value, with Algonquin Power & Utilities holding a significant stake in the company at 42%. While the outcome of the ongoing discussions with Energy Capital Partners remains uncertain, the potential deal could signify a significant development within the alternative energy sector. This comes amidst a trend of acquisitions in the sector, with companies like KKR making bids to acquire renewable energy producers like Encavis and utility-scale solar projects like Avantus. Additionally, California’s PG&E has entered discussions with KKR to sell a minority share of its power generation operations for grid improvements following wildfire concerns.