Spanish oil company Repsol is reportedly in discussions to divest a stake in its renewable energy unit as part of its strategic plan through 2027, according to four sources familiar with the matter.
The company has been approached by an investor and has enlisted Santander as an advisor for the potential sale, sources said. While Repsol would retain over 50% ownership of the unit, the transaction could involve the investor injecting fresh capital into the business. The identity of the investor remains undisclosed.
Sources caution that discussions are still in early stages, with no certainty of a finalized deal.
Repsol Renewables, valued at 5.9 billion euros ($6.4 billion) including debt, has attracted interest from investors seeking to support the company's shift towards renewable and low carbon initiatives, away from its traditional oil and gas operations.
Last year, Repsol ventured into the U.S. onshore wind power market with the acquisition of renewable energy developer ConnectGen. This move followed earlier investments in renewable energy firms such as Asterion Energies and a stake in U.S.-based renewables developer Hecate Energy.
Repsol has reaffirmed its commitment to this strategic shift, aiming for gross investments of up to 26 billion euros through 2027, with a significant portion allocated to low-carbon and renewable projects. The company targets between 9 and 10 GW of installed renewable capacity by 2027.
