After pausing investments in the Adani Group amid ongoing investigations, TotalEnergies is set to acquire VSB Group for $2.1 billion, expanding its renewable energy footprint in Europe.
TotalEnergies is set to acquire the renewable energy firm VSB Group for approximately $2.1 billion, in a deal that is nearing completion. According to a recent Bloomberg report, TotalEnergies and Partners Group, the private equity firm that currently holds a majority stake in VSB, are in advanced talks.
The transaction could be finalised soon, although the agreement may still face potential delays. This follows after TotalEnergies has paused new investments in the Adani Group in November.
VSB Group is a pan-European company specialising in developing, constructing, and managing renewable energy projects, primarily in wind and solar power. The company is also involved in project management and environmental planning in the renewable energy sector. It operates across several European countries, including France, Germany, Poland, and Italy, with over 500 employees and 21 branch offices globally. VSB’s portfolio includes solar, hydro, and wind power projects, reinforcing its strong presence in the renewable energy market.
Partners Group, which acquired an 80% stake in VSB Group in 2020, has been actively considering selling some of its infrastructure assets, valued at over $5 billion. VSB is reportedly among the assets Partners Group is looking to divest. This aligns with the growing interest from investors in the renewable energy sector, according to the Mint.
In terms of the deal, French company TotalEnergies is looking to expand its renewable energy footprint. It is already a significant player in the global energy market, offering a diverse portfolio of renewable energy solutions. TotalEnergies’ acquisition of VSB Group would help the company strengthen its position in the European renewable energy sector and support its broader sustainability goals.
However, TotalEnergies have not officially commented on the specifics of the transaction. Similarly, Partners Group also refrained from providing official statements regarding the deal.
In late November 2024, TotalEnergies announced it would halt any new financial contributions to its investments in Adani companies, citing ongoing investigations into the conglomerate’s activities. It had invested a total of $3.85 billion in Adani since 2019.
The pause in investments came amidst allegations surrounding the Adani Group, with TotalEnergies making it clear that it will not proceed with further investments until the situation is resolved.
While this setback in its India operations has raised some concerns, TotalEnergies continues to forge ahead with its renewable energy projects, such as the VSB acquisition, to solidify its place in the clean energy sector worldwide.
