TotalEnergies has agreed to buy 50% of Clearway Energy Group, the fifth-largest renewable energy company in the U.S.
TotalEnergies has been expanding into the rapidly growing renewable energy sector and diversifying away from hydrocarbon-focused activities in recent years.
The company said it would merge with Global Infrastructure Partners (GIP) as a result of the acquisition. As part of the deal, GIP will receive $1.6 billion in cash and a 50% minus one share stake in TotalEnergies’ subsidiary SunPower Corporation (SPWR.O), which owns 50.6% of the shares.
The deal will factor in securities valuations of $35.1 per share for ClearWay Energy and $18 per share for SunPower, the company said.
“This allows TotalEnergies to expand into the U.S. market, one of the most dynamic in the world, using operating assets and a high-quality 25GW wind, solar and storage pipeline, with a broad geographic footprint and a presence in 34 countries,” Chairman and CEO of TotalEnergies Patrick Pouyanne said.
Clearway owns 7.7 gigawatts (G.W.) of wind and solar assets through its listed subsidiary CWEN and a 25 G.W. renewable energy and storage project.