Macquarie, Norsk Hydro complete renewables JV deal

Macquarie Asset Management has closed the acquisition of a 49.9% stake in the renewable energy business of Norwegian aluminium supplier Norsk Hydro ASA (OSE:NHY), the latter said today.

As agreed last October, Macquarie has acquired the stake in Hydro Rein in a deal worth USD 333 million (EUR 311.1m), of which USD 214 million will be transferred to the vendor by June 25. The remaining amount will be contributed over time, according to the statement.

Following the transaction, Hydro Rein will operate as a joint venture, with Hydro Energi keeping a 50.1% stake. The business has a gross project portfolio of 8.4 GW in development across its core markets in the Nordics and Brazil. All of Hydro Rein’s assets in Brazil, Denmark and Sweden, as well as its Energy Solutions projects will be included in the JV, except for potential onshore wind projects located close to Hydro’s smelters.

Funds from the deal will fully fund Hydro Rein’s projects under construction and development and support the projects in its pipeline over the coming years.

“Hydro Rein is well equipped to execute on its ambitious growth agenda, with a strong project pipeline going forward,” said Hydro’s president and CEO Eivind Kallevik.

(USD 1.0 = EUR 0.934)

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