REPYY Repsol SA (QX)

   By Alberto Delclaux 
 

Repsol SA (REP.MC) has abandoned its pursuit of KKR & Co.'s (KKR) solar-energy company X-Elio because the asking price of more than 1 billion euros ($1.12 billion) is too high, a person familiar with the matter said Tuesday.

At such a high price the deal didn't meet Repsol's profitability criteria, the person said.

KKR purchased an 80% stake in X-Elio from Spain's Gestamp Renovables in a deal first announced in 2015, while the remaining 20% stake is held by holding company ACEK, which also owns a majority stake in Gestamp Automocion (GEST.MC).

According to its website, X-Elio operates 41 solar plants with a total installed capacity of more than 650 megawatts.

Over the past year, Repsol has been looking to increase its participation in renewables and alternative power generation as part of a sector-wide push to cut down carbon emissions. In November, the Madrid-based group closed a EUR733 million deal to acquire a 2,350 megawatt portfolio of hydroelectric and combined-cycle gas assets from Viesgo.

This story was translated in whole or in part from a ​Spanish-language version initially published by EFE Dow Jones, a partner of Dow Jones & Co.

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

(END) Dow Jones Newswires

April 30, 2019 05:42 ET (09:42 GMT)

Copyright (c) 2019 Dow Jones & Company, Inc.