Saudi oil giant Aramco has shown interest in purchasing a minority stake in the renewables business of Spanish energy company Repsol, as reported by Spain’s business daily Expansion. The entire value of Repsol Renewables is estimated at around $6.5 billion (6 billion euros).
Two years ago, Repsol sold a 25% stake in its renewables business to Crédit Agricole Assurances and Energy Infrastructure Partners for almost $1 billion. Last month, Repsol announced plans to invest billions in developing global renewable projects in order to reach between 9,000 MW and 10,000 MW of installed capacity by 2027, with a significant portion in the United States.
Repsol has engaged Spanish banking giant Santander to serve as an advisor for the potential sale of a minority stake in its renewables business. However, Repsol plans to maintain ownership of more than 50% of its renewables business even if a deal is made.
Although Aramco has approached Repsol about potentially acquiring a minority stake in Repsol Renewables, no formal offer has been submitted as of yet, according to sources cited by Expansion. The Spanish firm has recently received an unsolicited approach from an investor looking to purchase a stake in its renewables unit and is currently in discussions regarding the sale with interested parties.
Aramco is also looking to invest in new energies outside of Saudi Arabia, as stated by the company’s CEO Amin Nasser in April. The oil giant has doubled funding to its venture capital arm earlier this year, indicating a commitment to investing in new technologies and energies, including potential collaborations with partners worldwide.
