Jones Day Advises TotalEnergies on €1.57 Billion Acquisition of VSB Group.
TotalEnergies has entered into a strategic acquisition agreement to acquire VSB Group, a German-based renewable energy developer specializing in wind farms and photovoltaic power plants, for €1.57 billion in equity value. Jones Day, led by Martin Schulz, is acting as TotalEnergies’ legal advisor in this significant transaction.
VSB Group operates across multiple European countries, including France, Italy, Poland, Finland, and Croatia, aligning with TotalEnergies’ broader strategy to expand its footprint in renewable energy. This acquisition will add substantial onshore wind expertise to TotalEnergies’ portfolio, further boosting its Integrated Power business model in Europe, particularly in Germany.
Strategic Divestiture of Renewable Energy Assets in Texas
In addition to the VSB Group acquisition, TotalEnergies is also divesting a 50% stake in a 2 GW solar and battery energy storage systems (BESS) portfolio located in Texas. This divestiture, executed in partnership with funds managed by Apollo (NYSE: APO), is valued at $800 million, with TotalEnergies receiving $550 million in equity from Apollo and $250 million in refinancing of shareholder loans.
The portfolio includes three major solar projects with a combined capacity of 1.7 GW, along with two battery storage projects totaling 300 MW. Post-transaction, TotalEnergies will retain a 50% ownership interest and continue to operate the assets. This deal is a crucial part of TotalEnergies’ strategy to optimize its capital allocation and further enhance the profitability of its Integrated Power business.
Strategic Impact of the Transaction
According to Stéphane Michel, President of Gas, Renewables and Power at TotalEnergies, the acquisition of VSB Group and the divestiture in Texas will help optimize the company’s renewable energy portfolio. He noted, “In line with our strategy, these transactions will enable us to optimize our capital allocation in renewables and contributes to improve the profitability of our Integrated Power business. We welcome the 500 employees of VSB Group and their leading onshore wind expertise in European markets. Their competences and assets will contribute to the development of our Integrated Power strategy in Europe, and notably in Germany. Finally, we are looking forward to joining forces with Apollo as a partner in our renewable assets in Texas.”
These moves underscore TotalEnergies’ ongoing commitment to transitioning to cleaner, renewable energy sources as part of its broader strategy to reduce carbon emissions and meet global energy needs sustainably.
TotalEnergies is a global energy company based in Paris, France, operating across the entire energy value chain, from oil and gas to renewables and low-carbon solutions. With a focus on sustainability, TotalEnergies aims to achieve net-zero emissions by 2050. The company is heavily investing in solar, wind, and battery storage, as well as electric vehicle charging and bioenergy. Operating in over 130 countries, TotalEnergies is diversifying its portfolio through acquisitions and partnerships to support the energy transition. The company combines traditional energy sources with clean energy solutions to meet global energy needs sustainably.
Jones Day is a leading global law firm headquartered in Cleveland, Ohio, with offices in major cities worldwide. Known for its expertise in corporate law, litigation, and regulatory matters, Jones Day serves a wide range of industries, including energy, financial services, and technology. The firm is recognized for handling complex, high-profile cases and transactions, advising clients on mergers, acquisitions, and compliance issues. With a reputation for deep legal knowledge and strategic counsel, Jones Day is committed to delivering exceptional service to its clients across the globe.
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