Repsol Eyes Stake Sale for Strategic Plan
POWER & RENEWABLE ENERGY

Repsol Eyes Stake Sale for Strategic Plan

Spanish oil major Repsol is reportedly engaged in negotiations to offload a portion of its renewable energy subsidiary as part of a strategic maneuver to propel its ambitious agenda through 2027.

Santander has purportedly been enlisted to facilitate the sale, indicating a significant step in Repsol's financial strategy. While Repsol intends to retain a majority stake in its renewables arm, the prospective deal may involve the infusion of fresh capital by the investor. However, the identity of the investor remains undisclosed at present.

Repsol Renewables, valued at 5.9 billion euros ($6.4 billion), including debt, stands as a cornerstone of Repsol's transition towards renewable energy. The move follows a precedent set in 2022 when Repsol divested a 25 per cent stake to French insurer Credit Agricole Assurances and Switzerland-based Energy Infrastructure Partner (EIP).

The divestment strategy aligns with Repsol's broader vision of realigning its portfolio towards renewable and low-carbon ventures, while maintaining a foothold in traditional fossil fuels. The company's commitment to this transition was reiterated in February, alongside plans for substantial investments in low-carbon and renewable projects.

Repsol's strategic blueprint entails gross investments of up to 26 billion euros through 2027, with a significant portion earmarked for renewable ventures. The company aims to ramp up its renewable capacity to between 9 and 10 GW by 2027, underlining its commitment to sustainable energy solutions.

While discussions regarding the stake sale are reportedly in their nascent stages, uncertainties loom over the fruition of the deal. Repsol and Santander declined to comment on the ongoing negotiations, indicating the sensitivity and complexity surrounding the potential transaction.

As Repsol charts its course towards a greener future, the outcome of these negotiations could serve as a pivotal moment in the company's transition towards sustainable energy, while navigating the complexities of the global energy landscape.

Spanish oil major Repsol is reportedly engaged in negotiations to offload a portion of its renewable energy subsidiary as part of a strategic maneuver to propel its ambitious agenda through 2027. Santander has purportedly been enlisted to facilitate the sale, indicating a significant step in Repsol's financial strategy. While Repsol intends to retain a majority stake in its renewables arm, the prospective deal may involve the infusion of fresh capital by the investor. However, the identity of the investor remains undisclosed at present. Repsol Renewables, valued at 5.9 billion euros ($6.4 billion), including debt, stands as a cornerstone of Repsol's transition towards renewable energy. The move follows a precedent set in 2022 when Repsol divested a 25 per cent stake to French insurer Credit Agricole Assurances and Switzerland-based Energy Infrastructure Partner (EIP). The divestment strategy aligns with Repsol's broader vision of realigning its portfolio towards renewable and low-carbon ventures, while maintaining a foothold in traditional fossil fuels. The company's commitment to this transition was reiterated in February, alongside plans for substantial investments in low-carbon and renewable projects. Repsol's strategic blueprint entails gross investments of up to 26 billion euros through 2027, with a significant portion earmarked for renewable ventures. The company aims to ramp up its renewable capacity to between 9 and 10 GW by 2027, underlining its commitment to sustainable energy solutions. While discussions regarding the stake sale are reportedly in their nascent stages, uncertainties loom over the fruition of the deal. Repsol and Santander declined to comment on the ongoing negotiations, indicating the sensitivity and complexity surrounding the potential transaction. As Repsol charts its course towards a greener future, the outcome of these negotiations could serve as a pivotal moment in the company's transition towards sustainable energy, while navigating the complexities of the global energy landscape.

Next Story
Infrastructure Energy

KEC Secures Rs 10, 380 Mn Substation Order in Saudi Arabia

KEC International Ltd., a global infrastructure EPC major, and an RPG Group company, has secured a new order worth Rs 10,380 million for the Design, Supply and Installation of a 380 kV GIS Substation in Saudi Arabia.Vimal Kejriwal, MD & CEO, KEC International Ltd., commented, “We are delighted with the successive order wins in our T&D business. In a landmark achievement, we have secured our largest ever substation order. This prestigious order in the Middle East has widened our portfolio and strengthened our presence in the region. With this strategic win, our year-to-date or..

Next Story
Infrastructure Urban

Central Bank of India executes first fully digital SCF deal on PSB Xchange

In a major advancement for India’s banking sector, Central Bank of India (CBI) has successfully completed the country’s first fully digital supply chain finance (SCF) transaction on PSB Xchange—a unified multi-lender platform launched by PSB Alliance. PSB Xchange is designed to connect public and private sector banks, NBFCs, and fintechs with corporates and their channel partners to facilitate supply chain finance and small business loans. The transaction marks the first time a fintech-originated corporate lead has been seamlessly processed through the PSB Xchange ecosystem. The lead fl..

Next Story
Infrastructure Energy

Atlanta Electricals secures Rs 1,835 Mn transformer order from BNC Power

Atlanta Electricals Limited (“Atlanta”) has secured an order worth Rs 1,835 million from BNC Power Projects Ltd for the supply of extra high voltage (EHV) transformers and a bus reactor for its Pugal site. The contract includes a mix of 315 MVA, 400 KV and 100 MVA, 132 KV transformers along with a 400 KV bus reactor. The project scope encompasses design, manufacturing, testing, and supply to the project site. Deliveries will be sequenced following engineering and drawing approvals, offering multi-quarter execution visibility and ensuring a steady production run-rate. The order will be ex..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Talk to us?