Mitsui will invest €575 million in Mainstream Renewable Power to help the developer expand its worldwide renewable energy portfolio spanning the Americas, Africa, and Asia-Pacific.
Mitsui will acquire 27.5 percent of Mainstream once the company issues new common shares.
Mitsui and Aker Horizons, who would control 54.4 percent of Mainstream after the transaction, will play a long-term active role in the company’s evolution. On a 100 percent basis, this transaction values Mainstream at almost €2.1 billion.
Mitsui will use its global business network across industries and its diverse industrial capabilities, including global independent power producer (IPP) expertise from 22 nations, to achieve its goals.
Mitsui’s global footprint, “deep experience” in the power sector, and global strategic relationships, when combined with Aker Horizons’ industrial skills, will have “significant strategic implications” for Mainstream’s transformation into a renewable energy powerhouse.
Mainstream’s geographic development into high-growth areas, diversifying its routes to market, particularly in corporate power purchase agreements, and increasing construction and operations capacity across multi-gigawatt platforms are among them.
Mitsui, Aker Horizons, and Mainstream want to create and establish “strong business clusters in the renewable energy space,” building on Mitsui and the Aker group’s years of successful collaboration.
Mitsui’s investment in Mainstream will deepen the two industrial organisations’ strategic alliance, creating the path for partnerships in new business areas such as energy trading, energy management, battery storage, and green hydrogen and ammonia.
Since taking a 75% stake in Mainstream in January 2021, Aker Horizons has made significant operational progress, including progressing the building of its wholly owned 1.4GW Andes Renovables wind and solar power platform in Chile, which is expected to be fully operational next year.
Other achievements include growing Mainstream’s global portfolio by 5.2 gigawatts to 16.6 gigawatts and launching the 1 gigawatt Nazca Renovables platform in Chile, which included the signing of a private power purchase agreement with a strategic partner.
Mary Quaney, CEO of the Mainstream Group, said: “There has never been a more critical time in the history of our planet to accelerate the global transition to renewable energy.
“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.”
Kazumasa Nakai , chief operating officer, added: “We are convinced that the participation in Mainstream will further strengthen the strategic partnership between the Aker group and Mitsui, driving forward our renewable energy transition and greenhouse gas reduction in response to global climate change.”
Eddie O’Connor, along with Irish retail investors, will own the remaining 18.1 percent of Mainstream after the acquisition.
The purchase is expected to close in April 2022. Mainstream will be developed further by Mitsui, Aker Horizons, and Mainstream in preparation for an initial public offering.
In connection with the transaction, DNB Markets, a subsidiary of DNB Bank ASA, functioned as financial advisor and Advokatfirmaet BAHR AS acted as legal advisor to Mainstream and Aker Horizons.