(Bloomberg) -- Neoen SA sold its renewable-energy portfolio in Australia’s Victoria state to HMC Capital Ltd., clearing the way for the French company’s takeover by Brookfield Asset Management Ltd.
In one of Australia’s biggest renewable-energy transactions this year, HMC will pay A$950 million ($610 million) for 652 megawatts of installed wind, solar and battery capacity, it said in a statement on Thursday. The portfolio also has a growth pipeline of 2.8 gigawatts, it added.
The deal paves the way for Brookfield’s acquisition of Neoen, a clean-power developer. The Australian Competition and Consumer Commission said in October that it wouldn’t oppose the €6.1 billion ($6.4 billion) purchase by a group led by the Canadian asset manager if the French company sold its assets in Victoria.
Brookfield already owns a controlling stake in AusNet, which operates Victoria’s power transmission network, part of its distribution network and some battery projects. That raised concerns for the competition watchdog that Brookfield might operate the Victorian transmission network to favor its own generation and storage assets, or hinder rival generators or storage assets.
Neoen has 4.36 gigawatts of wind, solar and battery projects in Australia in operation or under construction, according to its website. That is more than half of its global total of 8.4 gigawatts.
Sydney-based HMC said the deal to buy Neoen’s Victorian assets cemented its position in the top 10 of the largest renewable energy providers in Australia’s national market, which spans the east coast of the country. Western Australia has its own energy grid. It will pay A$750 million on financial close in July 2025, with the remainder due in December 2025.
Shares of HMC rose as much as 2.3% in Sydney, and were up 1.8% to A$12.41 a share as of 12:29 p.m. local time. They have doubled in value this year, making the stock one of the top performers on the benchmark S&P/ASX 200 index.
“Our move into the Energy Transition sector reflects the significant level of investment required both in Australia and globally to achieve decarbonization targets,” HMC Capital Chief Executive Officer David Di Pilla said. “We have received a significant level of interest from domestic superannuation funds to be foundation investors in HMC’s Energy Transition platform.”
Australia is in the midst of one of the world’s most rapid shifts away from coal — which still generates almost half of its electricity — to a renewable-dominated grid. The government has set a target for 82% renewable generation by 2030 to replace its aging coal fleet.
In May, Origin Energy Ltd. — which rejected a $12.8 billion bid by Brookfield last year — agreed to delay the closure of the nation’s largest coal plant by two years, helping ease concerns of a repeat of periods of extreme supply tightness that culminated in the unprecedented collapse of power trading in 2022.
--With assistance from Rob Verdonck.
(Updates share price in seventh paragraph)
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