TotalEnergies agrees to buy 50% of U.S. renewables company Clearway (updated)

Clearway Energy

25/05/2022 06:16

* To team up with GIP as part of Clearway deal
    * Clearway is fifth-biggest U.S. renewables player 

 (Adds details and background)
    PARIS, May 25 (Reuters) - TotalEnergies  TTEF.PA  said on
Wednesday it has agreed to buy 50% of Clearway Energy Group, the
fifth-largest renewables company in the United States, marking
the French group's largest U.S renewables energy acquisition.
    TotalEnergies has been branching out into the fast-growing
renewables energy sector and diversifying away from
hydrocarbon-centred activities in recent years. 
    The company said the acquisition would see it team up with
Global Infrastructure Partners (GIP). As part of the deal, GIP
will receive $1.6 billion in cash and an interest of 50% minus
one share in the TotalEnergies subsidiary that holds its 50.6%
ownership in SunPower Corporation  SPWR.O . 
    The transaction takes into account valuations of $35.1 per
share for ClearWay Energy and $18 per share for SunPower,
TotalEnergies added.
    "It allows TotalEnergies to scale up in the U.S. market, one
of the most dynamic in the world, benefiting from operating
assets and a 25 GW high quality pipeline, in wind, solar and
storage, with a wide geographic coverage with a presence in 34
states," said TotalEnergies Chairman and Chief Executive Officer
Patrick Pouyanne. 
    Clearway has 7.7 gigawatts (GW) of wind and solar assets in
operation through its listed subsidiary CWEN and a 25 GW
pipeline of renewable and storage projects.
    Last month, TotalEnergies reported a sharp rise in its
quarterly profit, helped by a surge in oil and gas prices in the
wake of Russia's invasion of Ukraine.  urn:newsml:reuters.com:*:nL5N2WQ27W

    

 (Reporting by Sudip Kar-Gupta; Editing by Jacqueline Wong and
Sherry Jacob-Phillips)
 ((sudip.kargupta@thomsonreuters.com; +33 1 49 49 53 84;))