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Toronto, Canada - Brookfield Corp. announced plans to purchase French green energy company Neoen SA for €6.1 billion ($6.6 billion), aiming to diversify its business in the global renewables market. The Canadian asset manager, along with Singaporean state-owned investment company Temasek Holdings Ltd., has entered into exclusive negotiations with Neoen shareholders to buy a 53.32% stake in the company for €39.86 in cash per share.

The deal values Neoen, known for building and operating solar power plants and wind farms, at €6.1 billion. Brookfield and Temasek intend to acquire the stake from shareholders including asset manager Impala SAS, insurance alliance Fonds Stratégique de Participations (FSP), and Xavier Barbaro, the chair and CEO of Neoen.

Following this, Brookfield plans to purchase the remaining shares and outstanding convertible bonds at the same price through a mandatory tender offer, required under French security laws due to the buyers’ control of over 30% of the company.

The offer price represents a 27% premium over Neoen's €31.40 closing price on the Euronext Paris prior to the announcement. Trading of Neoen shares was suspended as the offer was disclosed.

Legal and Financial Guidance

Clifford Chance LLP is advising Brookfield, with a team led by partners Benjamin de Blégiers and Gilles Lebreton. Bredin Prat is representing Neoen and Impala, while Gide Loyrette Nouel LLP is the legal adviser to Neoen’s board. Perchet Rontchevsky & Associés is acting as legal adviser to FSP.

Financial advisement is being provided by BNP Paribas and Société Générale SA for Brookfield, Bank of America Corp. for Neoen, and Citi for Impala.

Strategic Importance

Brookfield stated that the acquisition will support Neoen’s clean power projects, addressing increased demand driven by artificial intelligence and cloud computing. The purchase will be executed through Brookfield’s Global Transition Fund II, dedicated to net-zero investments. Brookfield Renewable, the largest investor in the fund, will contribute €500 million to the acquisition.

Connor Teskey, CEO of renewable power at Brookfield Asset Management, highlighted that acquiring Neoen enhances Brookfield’s global presence and diversifies its renewable energy portfolio, adding expertise in battery storage technology.

Neoen’s board supports the transaction, viewing Brookfield as a strategic partner that aligns with the company’s interests and goals.

Brookfield aims to initiate the mandatory tender offer by March 2025, pending regulatory approvals.