UK-based Macquarie Infrastructure and Real Assets Core Ltd has completed the acquisition of a 49.9% stake in the renewable energy business of Norwegian aluminium supplier Norsk Hydro ASA. The acquisition, valued at USD 333 million (EUR 311.1m), marks a significant step in Macquarie's expansion into the renewable energy sector.
The deal, which was agreed upon last October, sees Macquarie acquiring the stake in Hydro Rein, Norsk Hydro's renewable energy arm. Under the terms of the agreement, USD 214 million will be transferred to Norsk Hydro by June 25, with the remaining amount to be contributed over time.
See also: Norsk Hydro's Hydro Rein Set to Develop Large-Scale Wind Farm in Northern Sweden
Following the transaction, Hydro Rein will operate as a joint venture, with Norsk Hydro retaining a 50.1% stake. The business boasts a gross project portfolio of 8.4 GW in development across its core markets in the Nordics and Brazil.
The joint venture will include all of Hydro Rein's assets in Brazil, Denmark, and Sweden, as well as its Energy Solutions projects, except for potential onshore wind projects located close to Hydro's smelters.
See also: Norsk Hydro and Macquarie Asset Management Announce $332M Renewable Energy Joint Venture
The funds from the acquisition will be used to fully fund Hydro Rein's projects under construction and development, as well as to support the projects in its pipeline over the coming years.
“Hydro Rein is well-equipped to execute on its ambitious growth agenda, with a strong project pipeline going forward,” said Eivind Kallevik, President and CEO of Norsk Hydro.
