Hanwha Solutions is in line to acquire RES Group’s French unit in a €727 million deal that will accelerate the Korean corporation’s transition to becoming a “total renewable energy solution provider”.
The deal, which is led by Hanwha’s solar cells manufacturing division Q-Cells, would cover a 5GW pipeline of utility-scale onshore wind, solar and storage projects in RES France’s development and construction department.
RES and Hanwha Solutions have signed an exclusivity and put option agreement for the transaction and have initiated the consultation process with the staff council – elected employee representation – in France.
Subject to regulatory approval, the deal is scheduled to complete in October.
The capital raised from the sale will “fund RES’ continued growth of its global business”, the company stated.
RES is retaining its Support Services business in France, which is responsible for asset management and operations and maintenance activities.
“We look forward to seeing the continued success of the team in France under the contemplated new ownership and the potential of partnering with Hanwha Solutions in the future,” said RES chairman Gavin McAlpine.
The acquisition aligns with Hanwha’s plan to expand its green energy business in Europe by adding wind to its solar energy portfolio, and to “achieve economies of scale in the region, where it can supply photovoltaic modules more stably”, the South Korean giant stated.
It will also double Hanwha’s energy capacity in Europe to 10GW, taking the global total to 15GW.
“Decisive actions can make a company much more sustainable and profitable,” said Hanwha Q-Cells chief executive Kim Hee-cheul.
Q-Cells runs an energy retail business serving more than 100,000 households in Germany and operates a 5GW solar pipeline in Spain.