Japanese trading conglomerate Mitsui is to buy a 27.5% stake in Mainstream Renewable Power through a €575 million purchase of newly issued common shares.
The deal will help Mainstream become a “renewable energy major” by growing in new markets and boosting its power trading capabilities, the Irish developer explained.
Following the transaction — which is expected to close in April 2022 — Mitsui will own 27.5% of the company, Aker Horizons will own 54.4%, and Mainstream founder Eddie O’Connor and Irish retail investors will hold the remaining 18.1%.
The transaction values Mainstream at around €2.1 billion.
Trading and investment firm Mitsui has about 45,000 employees in 63 countries, and works in mineral and metal resources, iron and steel, infrastructure, chemicals and energy. It and Norwegian investment manager Aker Horizons will take a long-term active role in the growth of the company, Mainstream added.
It said Mitsui’s global presence, experience in the power sector and global strategic alliances, combined with Aker Horizons’ industrial capabilities will help the developer:
- accelerate expansion into new markets;
- broaden its routes to market, particularly though corporate power purchase agreements (PPAs);
- accelerate and increase its construction and operations capacity;
- augment its energy solutions capabilities including battery storage and power trading;
- and advance its offering in power-to-x technologies, Mainstream added.
Mainstream has a portfolio of wind and solar assets in Europe, Latin America, Africa and Asia Pacific.
Mary Quaney, Mainstream Renewable Power’s CEO, said: “Today’s transformational announcement reinforces Mainstream’s leadership position in the global race to net zero as well as enabling nations to rapidly reduce their dependence on oil and gas imports through the large-scale deployment of renewables.
“We are delighted to welcome Mitsui as our new strategic partner alongside Aker Horizons. Together we are fully focused on expediting our ambitious growth plans and leveraging our collective expertise and resources to transform Mainstream into a global renewable energy major this decade.”