Vinci puts billions on the table to become a renewable energy giant

Vinci has "signed an agreement with ACS for the acquisition of its energy activities," he said in a statement on Thursday.

For the French group, this is a "major strategic development" aimed at creating a "world player in engineering, works and services in the energy field". The aim is also to "develop renewable energy projects".

At the Paris Bourse, around 11:00 am (Paris time), the title of Vinci rose 2,92% to 89,93 euros, in a market rising slightly.

The operation, which should be finalized towards the end of the year, will allow the construction giant to get its hands on the Industrial Services division of ACS.

This entity of around 45.000 employees generates a turnover of more than 6 billion euros, mainly in Spain and Latin America. It is dedicated to engineering and work mainly in the field of energy.

The acquisition also concerns the interests held by ACS in eight concessions in the field of electricity transmission networks as well as a platform for the development of concession projects in renewable energies.

The acquisition price is estimated at around 4,9 billion euros. Payable "entirely in cash", it will be financed by available cash and lines of credit, specifies Vinci.

In addition, the group will be able to make additional payments, over a period of 8,5 years at the latest after the finalization of the operation, when the company develops additional renewable energy capacities. The maximum cumulative amount of these payments may reach 600 million euros.

"Major player" in renewables

The concession project development platform should "enable Vinci to become a major player in the renewable energy sector".

The group has already identified "new opportunities" for projects for this activity, mainly in photovoltaics, wind power and offshore wind power. These projects represent the development of a capacity of around 23 gigawatts.

"The synergies resulting from our geographical complementarity, our technical expertise and our integrated business models, will be a major asset for winning new projects and seizing opportunities" in the renewable energy sector, commented Xavier Huillard, President -director general of Vinci, quoted in the press release.

In addition, Vinci and ACS also intend to create a joint venture which will be able to acquire "mature renewable energy assets". This company would be 51% owned and fully consolidated by Vinci.

The Vinci group, known in particular for its motorway and airport concessions, was already present in the field of infrastructure related to energy and renewable energies through its Vinci Energies division, which generated a turnover of 13,7 , XNUMX billion euros last year.

This entity, present in 56 countries, is a major player in engineering and electrical works. It is active in energy infrastructure (around 4 billion euros in turnover), but also in communication and transport. She also works on building or factory projects.

Vinci Energies notably offers its customers "technical solutions" in order to reduce their carbon footprint.

In Europe, this division occupies a "strong position" in many countries including Germany, Switzerland, Belgium and Spain, according to the group's website.

In these markets, it faces competition from Engie, Spie, Eiffage and Bouygues.

The Vinci group achieved a turnover of 44 billion euros in 2020, down 10%, due to disruptions linked to the health crisis.