Case Studies


Equinor’s Acquisition of a Minority Stake in Scatec Solar

TRANSACTION OVERVIEW

  • On November 15, 2018, Equinor (NYSE:EQNR), formerly Statoil, acquired 9.7% of Scatec Solar (OSE:SSO) for approximately $82.4mm (NOK700mm)

EQUINOR OVERVIEW

  • Equinor is a global energy company committed to developing oil, gas, wind, and solar energy in over 30 countries
  • Equinor is the largest O&G operator in Norway, among the world’s largest offshore operators and a growing force in renewable energy under its New Energy Solutions division
  • In 2015, Equinor set up its New Energy Solutions division to drive business development in renewables and low-carbon solutions, and announced its intention to invest up to 20% of its CapEx, or $12bn, into low carbon energy solutions by 2030
  • The company has had two joint partnerships with Scatec Solar in the past, totaling 279 MW of utility-scale solar farms in Argentina and Brazil

SCATEC SOLAR OVERVIEW

  • Scatec Solar is an integrated independent solar power producer with installed capacity of 357 MW, and another 1,057 MW under construction
  • Additionally, the company has a project pipeline of ~4.3 GW under development across Latin America, Africa, Asia, and the Middle East
  • Scatec Solar was founded in 2001 and is headquartered in Oslo, Norway

GREENTECH’S ROLE

  • Greentech acted as a financial advisor to Equinor during the course of 2017 and 2018, supporting the company on its New Energy Solutions strategy
  • Greentech evaluated a variety of potential strategic alternatives and supported Equinor in implementing the chosen strategy
  • This transaction represents Equinor’s largest acquisition in the solar sector to date and highlights its increasing focus in the renewable energy sector
  • The transaction highlights Greentech’s expertise in the solar sector and its capabilities to provide strategic and financial advice toward Equinor’s new renewable strategy

WHAT THE TRANSACTION MEANS FOR THE RENEWABLES SECTOR

  • The transaction reiterates the predominance of solar among Utility and Oil & Gas majors as a preferred, reliable and cost-efficient renewable energy technology
  • Equinor’s acquisition of Scatec Solar highlights how strategics continue to be active in the renewable space through M&A and their continuing efforts of executing on their diversification strategies
  • The increased strategic interest in renewables creates additional competition and helps accelerate the sustainable energy transition

Other Case Studies