French Energy giant, Total Energies has signed an agreement to acquire German renewable energy giant VSB Group for the sum of €1.57bn in equity and shareholder loans subject to the approval of applicable merger control authorities.
VSB Group
The VSB group is a renewable leader in Europe with nearly 30 years of experience. and boasts over 500 employees. Over the years, VSB has built a recognized expertise and notable track record in the development of onshore wind power farms across Europe.
VSB has more than 2GW of developed onshore wind capacity in Europe in addition to over 475 MW of renewable capacity in operation or under construction mainly in Germany and France, and a pipeline of 18 GW of wind, solar, and battery storage technologies mainly across Germany, Poland and France.
Significance For Total
When the transaction is approved, it will strengthen Total Energies’ integrated electricity value chain in Germany where VSB holds half of its portfolio.
The latest purchase adds to Total Energies’ recent acquisitions of battery storage developer Kyon Energy and energy manager Quadra Energy, as well as strengthens Total Energies’ major positions in offshore wind in the north of Germany.
Speaking on the transaction, Total Energies managing director for gas, renewables & power, Stéphane Michel, said: “In line with our strategy, these two transactions allow us to optimize our capital allocation in renewable energies and contribute to improving the profitability of our Electricity sector.
“We welcome VSB Group’s 500 employees and their leading expertise in onshore wind power in European markets.
“Their skills and assets will contribute to the development of our integrated electricity strategy in Europe, particularly in Germany.
Apollo Transaction
In a separate transaction, Total Energies have also sold 50% of its 2 GW solar assets and storage systems in Texas, USA to Apollo as a partner company.
These assets consists of three solar projects with a total capacity of 1.7GW and two battery storage projects with a capacity of 300MW.
“In addition, we look forward to working with Apollo as a partner in our renewable assets in Texas,” Stephane Michel added.
According to Total, the sale to Apollo will bring $800m in cash to Total Energies ($550m in Apollo’s equity and $250m by refinancing shareholder loans).
At the conclusion of this transaction, Total Energies will retain a 50% stake and will remain the operator of the assets, Danish Fields, Cottonwood and Hill Solar held in Texas while the electricity produced by these projects would be partly sold to third parties, and the remainder will be marketed by Total Energies.
