Canada Pension Plan Investment Board (CPP Investments) will partner with international asset management group IKAV to acquire California energy producer Aera Energy LLC.
In September 2022, Exxon Mobil Corp. and Shell sold their California oil joint-venture Aera to German asset manager IKAV for $4 billion, ending a 25-year-long partnership that was one of the state’s largest oil producers at the time.
CPP Investments, one of the world’s largest institutional investors, agreed to purchase 49 percent of Aera Energy from IKAV. Created as a joint venture between Shell and ExxonMobil, Aera Energy is California’s second-largest oil and gas producer and accounts for nearly 25 percent of state production’.
IKAV, CPP Investments and Aera Energy recognize that meeting the complex challenge of climate change will require innovation across the global economy at a significant scale. CPP Investments and IKAV intend to help Aera balance its energy-transition efforts wit