Sources: Masdar, the UAE's solar energy company, is in negotiations with Endesa for a $200 million deal.

According to a document and two sources who are familiar with the matter, Masdar Abu Dhabi Renewable Energy Company and Endesa Spanish Power Utility are close to a deal in which Masdar would pay approximately $200 million for a 49% stake in Endesa's solar portfolio.

The agreement for the approximately 450 megawatts portfolio would build on the partnership that already exists between the two companies, and further expand Masdar’s operations in Spain. It sees Spain as a key country for its European expansion.

A spokesperson for Masdar, a state-owned company, said: "While we don't comment on market speculations, we continue exploring opportunities in the area as we expand toward our global goal of 100 gigawatts before 2030."

Endesa has declined to comment.

This deal also fits with Enel's strategy, the owner of Endesa, to sell minority stakes while still maintaining control over the assets.

Masdar acquired a minority stake last July in an Endesa-controlled solar portfolio of 2 gigawatts (GW).

In September, it acquired green energy company Saeta Yield in Canada from Brookfield for $1.4 billion.

Masdar is owned by the UAE's national oil company ADNOC, and Mubadala Investment Company.

Masdar's spokesperson described the deal with Enel and the acquisition of Saeta, as well as the majority stake in the Greek renewable energy company Terna, to be "operations that further expand our European footprint". (Reporting and editing by Aislinn Ling and Susan Fenton; reporting by Pietro Lombardi)

(source: Reuters)