Equans sold for €7.1bn to Bouygues
09 November 2021
French energy giant Bouygues is to acquire construction and services provider Equans, which includes its UK and Ireland business, for £6.1 billion (€7.1 billion).
Equans is a subsidiary of Engie Group. A major provider of renewable electricity generation and technical services to businesses and communities across Europe, it employs a staff of around 74,000 people.
In the UK & Ireland, where it was formerly known as Engie UK before being rebranded, Equans’ operations include all of Engie UK’s technical services & facilities management, energy efficiency and regeneration activities.
The acquisition deal will see Bouygues’ Energies & Services division, which specialises in telecoms, energy infrastructure and transport, acquire 100% of Equans’ shares. While this includes the all of Engie’s UK construction services activities, it does not include its power generation and supply operations.
Martin Bouygues, Chairman of Bouygues, said, “The signing of a purchase agreement with Engie to acquire Equans is very good news! It paves the way for us to create a new global leader in multi-technical services, with strong roots in France.”
While the deal is still subject to regulatory approval, it is expected to be completed in the second quarter of next year.
Upon completion, it will result in the formation of a new business entity - which will continue to operate under the Equans brand name - with a total workforce of around 94,000 people across Europe and yearly sales of £13.7 billion (€16 billion).
The merger is also expected to allow Bouygues to make annual operational cost savings that could be as high as £170 million (€200 million).
Bouygues said, “This new entity will be built around Equans, augmented by the Bouygues group’s Energies & Services arm.
“It will be perfectly placed to grasp new business opportunities, and to accentuate differentiation by leveraging its innovation capability, quality and local footprint. It would have broad geographical reach, extending to over 20 countries worldwide.”
Led by CEO Jérôme Stubler, the formation of Equans is part of Bouygues’s plans to expand into the Energies and Servies market.
Olivier Roussat, CEO of Bouygues, said, “The multi-technical services market is an up-and-coming one with strong growth potential, and will play a crucial role in the energy transition.
“The acquisition of Equans by Bouygues is a project that creates value for customers, for employees, and for shareholders. This activity will become a new standalone business segment within the Bouygues group, and will be the largest in terms of headcount and sales.
“This is the biggest acquisition Bouygues has ever made, and all our people will pull together to make it a success.”