Acciona buys into renewable power

24 April 2008

Acciona has Acquired Control of Cesa, Thought to be Southern Europe's largest wind farm operator, for € 1,37 billion. The Spanish contractor has paid € 973 million in cash and assumed € 397 million of debt to take over Corporación Eólica CESA, an investment vehicle owned by Mercapital, Juan Luis Arregui and UK investment fund Bridgepoint, which owns 93,1% of CESA. The deal is yet to be approved by competition authorities.

According to the company, the acquisition will give it an 18% share of the Spanish renewable energy market and reinforces its international expansion – it is already present in Germany, France, the US, Canada, Australia and China.

“The deal will enable Acciona to form new strategic relationships through its current alliances in Italy and Greece and future alliances in Portugal and Hungary and brings completion of the Energy division's Business Plan forward from 2009 to 2007.”

Under the terms of the deal, Acciona will acquire 536 MW of installed capacity – 496 MW in Spain and 40 MW in Italy and Greece. The operating wind farms, which are all about four years old, can generate cash flow for over 16 years. Capacity currently under construction in Spain amounts to 138 MW, which will be operational by the end of this year.

CESA will develop 878 MW in Spain and abroad in 2006 to 2009 – 563 MW in eight Spanish regions, and 315 MW in Italy, Greece, Portugal and Hungary.

CESA also has a project portfolio of over 3400 MW, of which 2050 MW relates to projects in Spain and 1350 MW to projects outside Spain, which will be developed from 2010 onwards.

According to the company the strategic rationale of the transaction is “coherent with Acciona's acquisition strategy in development and sustainability and makes considerable strategic sense because it reinforces Acciona Energy's position in renewable energy, while contributing high-quality operating assets and wind farms, while increasing Acciona's growth profile and market share in Spain.”

Latest News
CSCEC-built spiral tunnel officially recognised as world’s longest
A spiral tunnel in China, built by Chinese construction giant China State Construction (CSCEC), has been recognised as the world’s longest
Consortium wins €302m deal to build Swiss railway plant
A consortium led by Swiss construction company CSC Costruzioni has won a contract worth €302 million (US$327 million) to build a new railway plant in Switzerland
Epiroc to acquire French attachments manufacturer
Swedish OEM continues massive attachments expansion following Stanley acquisition