Masdar and TotalEnergies signed a binding agreement on 2 April to merge their onshore renewable businesses in nine Asian countries into a US$2.2bn joint venture owned equally by the two companies.
Why Masdar (Abu Dhabi Future Energy Company) is buying TotalEnergies' onshore renewables in nine Asian countries (50% JV)
Masdar's chairman said Asia will be the main driver of global electricity demand growth this decade and that the partnership would speed its progress across the continent. TotalEnergies said combining the two firms would secure significant market positions and create more value than acting alone, in line with its Integrated Power strategy.
“Asia will be the main driver of global electricity demand growth this decade, and this collaboration with TotalEnergies will accelerate our progress across the continent.”
Deal terms and financing
Each partner will contribute assets of comparable value. The venture will start with 3GW of operating solar, wind and battery storage capacity and 6GW of projects in advanced development, and will be the sole vehicle for both companies' onshore renewables in the nine markets.
Regulatory approvals and timing
Closing is subject to regulatory approvals and conditions; the companies said the JV's management team would be announced later.
Market context
The JV will be headquartered in Abu Dhabi Global Market with around 200 employees drawn from both companies. Masdar is owned by TAQA, Mubadala and ADNOC.
