By Pietro Lombardi 
 

Galp Energia SGPS SA (GALP.LB) and Actividades de Construccion y Servicios SA (ACS.MC) have reached a 2.2 billion-euro ($2.43 billion) deal that Galp claims will make it the main solar-power producer in the Iberian region.

Under the deal, the Portuguese energy company will buy ACS's stake in photovoltaic energy projects in Spain, the companies said late Wednesday.

The deal includes existing plants and projects that will be developed in coming years, for a total capacity of 2.9 gigawatts by 2023, according to Galp. The energy produced will be enough to power 1.8 million households, it said.

The total value of the deal through 2023 is EUR2.2 billion, the Portuguese company said.

Galp expects the transaction to be completed in the second quarter, when it will pay EUR450 million and assume liabilities of about EUR430 million.

Write to Pietro Lombardi at pietro.lombardi@dowjones.com

(END) Dow Jones Newswires

January 23, 2020 01:45 ET (06:45 GMT)