North American energy infrastructure company Enbridge Inc. (Enbridge), through its wholly owned subsidiary, entered into a definitive agreement to acquire Canada Pension Plan Investment Board’s (CPP Investments) 24.45% share in the German offshore wind farms Hohe See and Albatros, for a total consideration of €625 million, comprised of €267 million in cash and €358 million in assumed debt.
Together, the wind farms produce a combined 2.5 million megawatt hours of electricity each year, supplying energy to more than 700,000 households. This acquisition will add additional capacity to Enbridge’s regionally diversified and growing renewable portfolio. The acquired stake, combined with the existing stake of 25.44%, will increase Enbridge’s indirect ownership of Hohe See and Albatros to 49.89%.The transaction closed on November 3, 2023.
Enbridge operates the world’s largest crude oil and liquids pipeline system in Canada and the US, Canada’s largest gas distribution system and a portfolio of natural gas gathering, transmission and processing assets. The company also has interests in renewable and alternative power generation capacity totalling 2,175 MW net. Enbridge intends to continue to invest in wind and solar.
Dentons acted as the exclusive legal advisor to Enbridge on the transaction with a cross-practice and cross-jurisdictional team. Canadian partners Vivek Bakshi and Jamie Thomas, jointly with German partner Thomas Schubert, led the M&A aspects of the transaction, and Canadian partner Bill Jenkins and German partner Axel Schlieter led the team advising Enbridge on the debt assumption. The core legal team was also comprised of Kurtis Parcells, Yulia Kishchik (Canada), Maria Brakalova, Michael Graf, Matthias Nordmann, Max Purnhagen and Julia Heitmann (Germany), and Namik Ramic and David Paiva (Luxembourg).
Dentons’ advice to Enbridge builds on previous successfully completed projects, including its initial investment in the Hohe See and Albatros offshore wind farms in 2017 and on a joint venture with CPP Investments in 2018.
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