REPYY Repsol SA (QX)

   By Alberto Delclaux 
 

Repsol SA (REP.MC) has agreed to buy low-emissions power plants and the retail business of Spanish energy company Viesgo for 750 million euros ($870.9 million), it said in a statement late Wednesday.

The move forms part of the Spanish oil-and-gas company's push toward cleaner energy and power generation envisaged in its strategic plan.

Repsol said it will buy two combined-cycle plants from Viesgo with a total capacity of 1,650 megawatts, as well as three hydroelectric plants with an output of 700 megawatts.

The transaction will bring Repsol's total low-emissions-generation capacity to 2,950 megawatts. Its goal is to reach 4,500 megawatts by 2025.

With the acquisition of the retail business, Repsol will have 750,000 gas and electricity clients, representing more than 2% of the market share. Its 2025 objective is to win a market share of 5% and reach 2.5 million customers.

Viesgo is currently owned by Macquarie Infrastructure and Real Assets, and Wren House, which forms part of the Kuwait Investment Authority.

The transaction is expected to be completed in the fourth quarter, Repsol said.

Write to Alberto Delclaux at alberto.delclaux@dowjones.com

(END) Dow Jones Newswires

June 28, 2018 01:27 ET (05:27 GMT)

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