Canadian pension fund manager Caisse de Dépôt et Placement du Québec (CDPQ) has announced its intention to acquire Innergex Renewable Energy Inc., marking a significant shift within the renewable energy sector. The deal, valued at approximately C$10 billion (USD $7 billion), includes debt and offers Innergex shareholders C$13.75 per share, which constitutes a remarkable 58% premium compared to its closing price on the Toronto Stock Exchange prior to the announcement.
The agreement, revealed on February 25, 2025, came as Innergex’s board of directors unanimously approved the transaction, highlighting confidence from key stakeholders. Emmanuel Jaclot, CDPQ's head of infrastructure, expressed enthusiasm about the investment, stating, "This investment perfectly demonstrates our constructive capital and dual mandate: striving for optimal returns, and supporting businesses like Innergex, which play key roles in the energy transition.”
Headquartered in Quebec, Innergex operates various renewable energy facilities, including hydroelectric plants, wind farms, solar farms, and energy storage sites across Canada, the U.S., France, and Chile. The company boasts interests in 90 facilities, generating more than 3,700 megawatts of installed capacity, and holds 17 additional projects currently under development.
CDPQ is already one of the largest shareholders of Innergex, following Hydro-Québec, which owns about 19.9% of the company and supports this acquisition. Hydro-Québec’s support is pivotal, as they have agreed to vote their shares in favor of the transaction which is expected to solidify Innergex’s position as a leading player within Quebec's renewable energy sector.
With the transaction expected to close by the end of 2025, stakeholders have begun to outline the strategic direction for the future. Monique Mercier, Chair of the Special Committee at Innergex, commented on the deal's significance, stating, "Today's announcement is pivotal for our company. After extensive work and careful deliberation, the Special Committee and the Board of Directors have unanimously concluded this transaction is fair to its shareholders. It provides immediate liquidity at an attractive premium, positioning Innergex for long-term success.”
Innergex has been at the forefront of renewable energy for over 35 years and is known for its strong relationships with Indigenous communities, directly aligning with CDPQ's goals of sustainability and long-term value creation. "We are excited for the future as we continue to grow and innovate. This collaboration allows us to leverage CDPQ's resources and expertise, ensuring our mission to build a world powered by renewable energy is realized,” remarked Michel Letellier, CEO of Innergex.
Despite concerns from general investors about the renewables sector, pension funds like CDPQ, which manage long-term liabilities, continue to show increasing interest, particularly underpinned by the reliable returns offered by operating renewable energy facilities. With this acquisition, CDPQ and Innergex aim to capitalize on the growing demand for sustainable energy solutions.
The agreement also highlights the trend of increasing consolidation within the renewable energy industry, as larger investment entities are seeking to obtain significant holdings of companies engaged with sustainable energy practices. The expected closure of the deal by Q4 2025 is subject to customary closing conditions, regulatory approvals, and shareholder acceptance.
Moving forward, CDPQ plans to provide Innergex with the necessary financial and strategic support to propel its growth ambition, enabling the company to not just maintain, but also expand its leading position within North America’s renewable energy market. With its deep roots within the Quebec community and extensive expertise, Innergex is well-positioned to leverage this transaction for future growth and innovation.