The deal is for less than the current price of the stock

The Canada Pension Plan Investment Board (CPPIB) announced plans to buy Pattern Energy Group for $2.63 billion. CPPIB announced details of the deal for the renewable energy giant on Monday. Shareholders will receive $26.75 for the stock. That figure is actually lower than the price the stock traded for earlier in the day. In the final hour of trading on Monday, PEGI stock was off 2.5% at $27.03 per share, according to Reuters.

Pattern Energy controls wind and solar panel projects across Japan and the United States.

The Canada Pension Plan Investment Board Deal

The deal won’t close just yet. in fact, it is subject to a 35-day go-shop process. Under terms of the deal, Pattern Energy can go out and find a higher bid than the one offered by the Canada Pension Plan Investment Board.

Pattern Energy Chairman Alan Batkin has said that the company has generated interest from a number of suitors. The company formed a special committee in August to consider a number of bids. Given the surge of interest in ESG funds and renewable energy projects, a number of alternative investment firms are looking at potential acquisitions.

The CPPIB has been busy this year. The firm purchased the Canadian assets of NextEra Energy Partners. It also took a deal with Enbridge to purchase stakes in North American and German power projects.

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