Brookfield and La Caisse sign deal to buy Quebec-based power producer Boralex

MONTREAL – Two Canadian institutional giants are buying renewable power producer Boralex Inc. in a deal that they say will provide the scale and resources needed to accelerate growth.

Brookfield Asset Management Ltd. and La Caisse have agreed to buy the Quebec-based company for $9 billion including debt, or about $3.8 billion in equity value. 

The deal comes after renewable power producers have seen valuations drop from the highs of a few years ago as permitting and other headwinds have dimmed their outlook. 

But the trend has started to reverse over the past year, in part as investors looking at the electricity demands of artificial intelligence have helped boost valuations of all sources of power.

Boralex CEO Patrick Decostre said in a news release Wednesday that being part of Brookfield will bring helpful economies of scale as it aims to meet growing demand. 

“This transaction brings in the right long-term partners for Boralex as we enter an accelerated growth phase requiring significant capital deployment and financial flexibility.”

Jehangir Vevaina, Brookfield’s chief investment officer for energy, said in the release that the deal will help build the asset manager’s presence in Canada and other attractive energy markets.

“We are excited to partner with La Caisse to accelerate the delivery of Boralex’s development pipeline in its next phase of growth.”

La Caisse, Boralex’s largest shareholder with about a 15 per cent stake, has agreed to invest in the resulting private company, leading to a pro forma ownership of 30 per cent.

Brookfield, together with its institutional partners including Brookfield Renewable Partners, will hold the other 70 per cent.

It says the deal will add about four gigawatts of projects to Brookfield’s existing 46 gigawatts of global renewable energy, plus a further eight gigawatts in various stages of development across Canada, France, the U.S. and U.K.

Brookfield said the fundamentals remain strong for clean energy, which is why it’s adding more development capabilities in major strategic markets.

Under the agreement, the buyers will pay $37.25 per share in cash for the company. 

Shares in the company, which confirmed Monday it has been reviewing strategic alternatives, were up a little over 11 per cent at $36.68 in late-morning trading Wednesday on the Toronto Stock Exchange, and were up around 28 per cent this week.

Boralex shares peaked above $55 in early 2021, but were trading at less than half that level as of last week.

The deal, which is subject to shareholder and other approvals as well as customary conditions, is expected to close by the fourth quarter of this year.

This report by The Canadian Press was first published March 25, 2026.

Companies in this story: (TSX:BLX, TSX:BAM, TSX:BEP.UN, TSX:BN, TSX:BEPC)