TotalEnergies set to acquire renewable energy firm VSB Group for $2.1 bn amid Adani investment halt

Global energy giant TotalEnergies SE is close to acquiring VSB Group from private equity firm Partners Group Holding AG in a deal that values VSB at nearly $2.1 billion, Bloomberg reported on Tuesday, December 3, citing people aware of the development.

TotalEnergies SE is a global energy producer of French origin that sells an extensive inventory of oil and biofuels, natural gas and green gases, renewables, and electricity. 

The French energy company and Partners Group are in advanced discussions. They are likely to announce the transaction soon in the coming days, as per the report. A final agreement could still be delayed.

The company representatives for TotalEnergies and Partners Group refused to comment on the development, as per the report.

VSB Group is a pan-European renewable energy company that develops, constructs and manages wind and photovoltaic parks. The company offers services including project management and environmental planning in the renewable energy sector. 

The projects of VSB Group range across solar, hydro, and wind power in France, Germany, Poland, and Italy, with more than 500 employees and 21 branch offices globally.

Partners Group owns 80% stake in VSB Group

According to the report, Partners Group acquired an 80 per cent stake in VSB Group in 2020. The private equity firm has been considering selling some of its infrastructure assets, which have a combined value of more than $5 billion.

The Swiss buyout firm, Partners Group, is seeking to take advantage of investors' appetite in the sector. VSB is among the assets that Partners has been looking to divest, people aware of the development told Bloomberg. 

In its India business, TotalEnergies, which invested $3.85 billion in Adani group companies since 2019, said on November 25 that it had decided to hold off on new investments until the allegations are clarified, Mint reported earlier. 

“Until such time when the accusations against the Adani group individuals and their consequences have been clarified, TotalEnergies will not make any new financial contribution as part of its investments in the Adani group of companies,” said Total Energies in an official statement.