The French group Vinci announced on Thursday the signing of an agreement with the Spanish construction company ACS to acquire the activities focused on energy of this company for a value of 4.9 billion euros (5.748 billion dollars).
“This transaction is part of Vinci’s strategy, which wants to become a global player in engineering, works and services in the energy sector and also develop renewable energy projects,” the French group said in a statement.
On the Paris Stock Exchange, around 10:00 GMT, Vinci’s share rose 2.9%, while on the Madrid Plaza ACS it gained 0.50%.
The acquisition will conclude before the end of the year and affects the Industrial Division of ACS, the company chaired by Florentino Pérez, the head of the Real Madrid football club.
Vinci acquires a division that has 45,000 employees in some 50 countries and generates a turnover of 6,000 million euros, “especially in Spain and Latin America,” Vinci stressed.
The acquisition also affects parts that ACS owns in eight concessions, especially in the field of electricity transmission networks, and also a platform for the development of new projects in the renewable energy sector.
The acquisition will be paid entirely in cash thanks to the available treasury and credit lines of Vinci.
– Joint Undertaking –
ACS could receive up to 600 million more in a period of 8.5 years after the conclusion of the operation based on the development of supplementary renewable energy capacities.
In addition, Vinci and ACS intend to create a joint company that will be able to acquire “renewable energy assets”.
Vinci will hold 51% of the capital and ACS will hold 49%.
This operation “will allow Vinci to become a major player in the renewable energy sector.”
The French group has already identified “new opportunities” for projects, mainly photovoltaic, wind and offshore wind.
These projects involve the development of a capacity of approximately 23 gigawatts.
“The synergies arising from our geographical complementarity, from our technical expertise and from our merged business models are a quality added value to achieve new projects and opportunities” in the renewable energy sector, said Xavier Huillard, president of Vinci, quoted in this release.
The Vinci group, which manages highways and airports, is present in the energy sector through its Vinci Energies division, which had a turnover of 13.7 billion euros in 2020.
Vinci Energies is present in 56 countries and is a major player in the field of electrical engineering and works.
In Europe, Vinci Energies occupies “strong positions” in Germany, Switzerland, Belgium and Spain, according to the company’s website.
The Vinci group made a business volume of 44,000 million euros in 2020, down 10%, due to the covid-19 pandemic.