French construction company Vinci has acquired the energy business of Spanish engineering outfit ACS in a deal that includes taking control of a 15GW renewables pipeline.
The €4.9bn agreement, which will see the transfer of a 45,000 strong workforce in some 50 countries, covers a raft of projects in energy, such as transmission schemes.
Vinci said there are early-stage offshore wind farms totalling 8GW as well as onshore wind and solar sites included in the deal.
The French company and ACS have also agreed to negotiate a 51%-49% partnership agreement for the acquisition of mature renewables assets, to be developed, built and connected to the grid by the acquired company in the future.
The deal is consistent with Vinci’s strategy to become a global player in energy, including in renewables.
It will be financed through Vinci’s available cash and credit lines.
The earnings per share accretion is expected to be mid- to high-single-digit, from the first year after closing.
The acquisition is subject to customary regulatory approvals, including merger control, and is anticipated to close around the end of year 2021.
Vinci chief executive Xavier Huillard said: “This acquisition is a unique opportunity for Vinci to create a global player in energy contracting and to develop renewables projects, remarkably fitting its strategy.
“The Group is delighted to welcome an outstanding management team and a skilled workforce of around 45,000 people. Synergies derived from complementary geographies, technical expertise and integrated business model, will be a significant asset to win new projects and to seize greenfield renewables energy opportunities.
“We will capitalize on ACS’s recognized track record to enhance Vinci’s contribution to the climate transition and pursue our environmental ambition together”.