Brookfield makes bold move to become Australia's largest renewable energy owner




Brookfield, a Canadian investment giant, has set its sights on becoming the foremost player in Australia's renewable energy sector with a monumental $10 billion bid to acquire France’s Neoen. This move comes six months after a failed attempt to acquire Origin Energy by the Canadian firm.

Neoen, boasting a pipeline of projects nearly 10 gigawatts strong over the next decade, including the iconic Victorian Big Battery near Geelong, stands as an attractive prospect for Brookfield. The bid, endorsed by Neoen's board, values the company at €39.85 ($65.14) per share, marking a substantial premium of nearly 27% over its recent trading value.

The acquisition signals Brookfield's commitment to clean energy amid global uncertainties surrounding the transition away from fossil fuels. As Macquarie, another major investor in renewable energy, suggests, the journey towards sustainability is presenting unforeseen challenges.

The bidding process effectively halts a previously initiated sale of a 30% stake in Neoen’s Australian operations, which was anticipated to generate around $1.6 billion. Brookfield's Chairman, former Bank of England governor Mark Carney, underscores the strategic significance of Neoen's acquisition through its Global Transition Fund II.

Connor Teskey, Brookfield's Chief Executive of Power and Transition, highlights Neoen's exceptional renewable energy development platform, expressing enthusiasm for scaling up operations to meet escalating demand for clean power.

Brookfield's proposed acquisition will see collaboration with Temasek, the Singaporean sovereign wealth fund, echoing their partnership in the attempted Origin acquisition. The bid, subject to regulatory approvals globally, including in Australia, France, Europe, Canada, and parts of South America, reflects Brookfield's confidence in navigating complex energy markets.

The deal, anticipated to secure regulatory clearance more smoothly than the Origin bid, underscores Brookfield's persistent pursuit of renewable energy opportunities globally. With an eye on Neoen's extensive development pipeline and operational assets, Brookfield aims to bolster its position as a dominant force in the transition to clean energy.

Neoen's CEO, Xavier Barbaro, views Brookfield as an ideal partner to advance the company's growth narrative, reinforcing its leadership in renewable energy production on a global scale.

Brookfield's bold move not only marks a significant milestone in the evolution of Australia's renewable energy landscape but also reaffirms the company's commitment to sustainable investments on a global scale.

With this acquisition, Brookfield is poised to reshape Australia's energy sector and accelerate the transition towards a greener, more sustainable future.


Name Peter Milios

Peter Milios is a recent graduate from the University of Technology - majoring in Finance and Accounting. Peter is currently working under equity research analyst Di Brookman for Corporate Connect Research.