It is one of the leading firms in the world of alternative asset investments. With more than 925 billion dollars in assets under management, the giant Brookfield has come into the spotlight following it was announced that it is exploring a takeover bid for Grifols. The operation, of which details are not yet known, would lead it to launch a proposal of at least 6 billion euros – much less than what it had capitalized before receiving the offensive from Gotham City Research – which would make the manufacturer of blood derivatives its largest holding in Spain.
The acquisition of Grifols, which would be carried out in a joint operation with the family that owns it, would be the group’s largest purchase in Spain. It so happens that Scranton, the holding company of the family that owns Grifols, has recently refinanced its debt with Oaktree, which became controlled by Brookfield in 2019, although the hedge fund “operates as an independent company within the Brookfield family, with its own product offerings and investment teams.”
Although the details of the potential transaction are not yet known, the parties have confirmed to the National Securities Market Commission (CNMV) that they have held “exploratory talks with certain reference shareholders” of Grifols in relation to a potential joint offer for the pharmaceutical company’s shares. The ultimate goal would be to delist the company from the stock exchange. An exclusivity agreement has already been signed to continue evaluating the potential operation, which has been sent to the board of directors to obtain access to certain information to carry out a due diligence exercise.
Renewables and infrastructures
So far, the Canadian group has been gaining ground in the domestic market, mainly in the real estate, logistics and infrastructure sectors. In 2022, it joined forces with the Spanish company Logistik Services to develop industrial and logistics warehouses in the Iberian market and invest 500 million euros in the sector. Another of its forays has been into the world of car parks, with its entry into the APK2 group with Partners Group, and hospitals, as evidenced by the purchase from DIF of its stake in the Puerta de Hierro University Hospital in Majadahonda (Madrid), as well as in line 9 of the Barcelona Metro and in three Madrid interchanges.
Brookfield has also made acquisitions in the hotel world, acquiring landmarks such as the Hotel Princesa in Madrid for 175 million euros from Colony Capital or the historic hotel chain Selenta from the Mestre family for 440 million following having suffered the blow of the coronavirus. It also tried to take over the Apolo hotel in Barcelona, which ended up in the hands of Meliá.
However, in recent months Brookfield has occupied the media agenda for its positions in the renewables world. The Canadian group bought the renewables firm X-Elio in two phases, first with the American fund KKR and later acquiring the stake of its former partner. Another of its major investments is Saeta Yield, a former subsidiary of ACS, which is currently in a sale process coordinated by Banco Santander and Société Generale. This transaction continues its course in 2024 with a view to ending up in the hands of another private equity fund or groups such as Total, Engie, Masdar or CTG.
Outside of renewables and infrastructure, the Canadian giant has also set its sights on investments in alternative assets in Spain. Its most significant purchase in this division was that of the slate group Cupa for 900 million euros, where it took a largely majority stake (85%) and began to co-exist in the capital with some members of the management team who retained their shares, such as its CEO, Javier Fernández, who reinvested in the project.
But not all acquisition attempts have been successful in Spain. In the summer of 2020, Brookfield was interested in another large Spanish listed company, the socimi Merlin. The operation, which was widely rumoured in the sector and was never confirmed, would have involved an outlay of around 3.3 billion euros, according to the share prices at that time.
Facing BlackRock and Apollo
With more than $900 billion in assets under management (181 billion in Europe, where it has around 55,000 employees), Brookfield is one of the heavyweights of private equity worldwide. Its size is similar to other giants such as BlackRock, The Carlyle Group, KKR or Apollo Global Management. Its size is also explained by its presence in 30 countries on five continents and by its 2,000 investments made worldwide.
