Canada Pension Plan Investment Board (CPP Investments) has agreed to partner with German asset manager IKAV, to acquire energy producer Aera Energy.
Last September, infrastructure energy asset manager IKAV announced plans to acquire the Californian energy producer. CPP Investments announced today that it has agreed to purchase 49% of the shares from IKAV.
The investors said it will help Aera Energy, which is a joint venture between Shell and ExxonMobil, to balance its energy transition. This will include investing in a renewable energy portfolio to “power its existing operations”. Over time, it will also deploy renewable energy across Aera’s land holdings.
Some legacy oil and gas infrastructure will also be repurposed for carbon capture and storage capability.