Bank of America is due to shortlist bidders for Neoen’s Victorian renewables assets this week, according to three sources familiar.

Iberdrola and Engie are among those competing for the assets, the sources said.

RBC is advising Iberdrola, and Lazard also has an advisory role, they said.

Canada’s Brookfield and Singapore’s Temasek are selling Neoen’s Victorian assets in an effort to get the Australian Competition and Consumer Commission (ACCC) – Australia’s antitrust regulator – to agree to their EUR 6.1bn offer for Neoen.

While any proposal for the Victorian assets would probably be contingent on the bidders getting regulatory approval for the larger transaction, sources said that the planned selldown may not go far enough for the ACCC.

In Australia, Brookfield already owns:

AusNet, the principal transmission network in Victoria;
X-Elio, a renewable energy developer and operator, which has one solar farm in operation in Queensland, and;
a stake in TransAlta, which owns gas-fired power stations in Western Australia.

The Canadian investor proposes to offer a court-enforceable undertaking to address potential competition issues, which would include the Victorian sale, and some separation obligations regarding the management of Neoen and AusNet.

Separately, Brookfield is selling equity and raising debt for X-Elio’s Blue Grass solar and battery project in Queensland. It is also negotiating to buy Squadron Energy’s 75% stake in Australian wind developer, Windlab.

Outside Europe, Australia hosts Neoen’s biggest asset base, with close to 4 GW – or about half its global total – operating and under construction, according to its website. It is targeting 10 GW globally by 2025 and 10 GW by 2030 in Australia.

Prior to this announcement, Neoen was running a sale of 30% of its Australian portfolio. It attracted a small number of first round bids, which were lodged in May.

Brookfield and Temasek have already signed an agreement to buy 53.12% of Neoen from Impala, the Fonds Stratégique de Participations managed by ISALT, Cartusia, Xavier Barbaro and other shareholders.

The acquirers are now seeking antitrust and foreign investment clearances before filing an all-cash mandatory tender offer for the remaining shares and outstanding convertible bonds in Neoen.

The parties expect to receive regulatory approvals by the fourth quarter of this year and to launch the tender offer in the first quarter of next year.

Brookfield’s global transition funds will be making its investment, if it goes ahead.

Spokespeople and officials at Brookfield, Temasek, Iberdrola, Engie, Lazard, RBC and Neoen either declined comment or did not respond to requests for comment.