Energy of trust. Japanese and French officially announce divorce by dividing assets of 3 parties

TrustEnergy Consortium today announced the completion of the divorce and asset division process.

They divided the wind assets with the French from Engie who took over the Pego gas plant and the Japanese from Marubeni who took over the Tapada do Otero gas plant.

“This transformational move aims to increase focus, flexibility and provide accelerated growth opportunities for each shareholder, in line with their strategies and ambitions, in the dynamic Portuguese energy market. This strategic division is driven by the recognition that the sector is undergoing a major transformation in our geography, with increasing demand for renewable energy solutions and evolving customer preferences, according to the statement issued today.

“Through this split, ENGIE and Marubeni Corporation, in pursuing their individual projects, intend to better align themselves with market dynamics and offer customized solutions to meet the diverse needs of their customers.

Completion of the transaction is subject to “certain conditions precedent” set forth in the Share Purchase and Sale Agreement, “including: “Approval from relevant regulatory authorities,” the deal is expected to be completed in the fourth quarter of the year, it said.

End of Life Alliance ensures that “All TrustEnergy employees' positions have been secured and will be merged into Marubeni Corporation or Engie's companies.

“The company is committed to providing the best possible service to its customers,” Engie CEO Carlos Rosario said in a statement.We believe that Portugal has enormous potential to lead this transformation, shaping the future of energy through the development of renewable resources. This strategic division is a step towards realising our strong ambitions to build a more sustainable and prosperous future for all, through greater development of renewable energy.

Celio Pinto da Marubeni said:After a period of reflection and strategic planning, TrustEnergy shareholders decided to pursue different paths. This decision was driven by Marubeni Corporation’s ambition to expand as an energy solutions provider and explore new business opportunities. This separation will allow us to innovate, grow and better respond to the specific needs of our partners and customers in the transition to carbon neutrality. Our commitment to excellence remains unwavering, and we are determined to make this change a positive milestone in the history of Marubeni Corporation in Portugal.

At the beginning of July, Brussels has allowed Marubeni to buy TrustEnergy’s assets. “The European Commission has approved the acquisition by Japan’s Marubeni of sole control over certain parts of TrustEnergy BV in Portugal. Previously, Marubeni had joint control over TrustEnergy’s subsidiaries,” according to the decision issued on July 5.

The Commission concluded that the deal “does not raise competition concerns, given that the companies are not active in the same or related vertical markets, and the impact on market structure is limited.”

Regarding the divorce, the committee explains that “Marubeni and Engie have agreed to terminate the joint venture and divide the business between them. The subsidiaries that Marubeni will acquire are wind and natural gas power plants, solar power development projects and hydrogen production.

TrustEnergy BV, which was 50% owned by each of the two companies, with an installed capacity of three gigawatts, was “the second largest player in the electricity sector in Portugal and the fourth in the wind energy sector,” according to the company.

Among the assets are Trustwind, which owns the group’s wind energy assets; Turbogas, which owns the Tapada do Outeiro gas plant in Gondomar (pictured), Porto; and Electgas, the natural gas plant in Pego, Santarém (co-owned by TrustEnergy/Endesa).

TrustEnergy also owns 56% of the Pego coal plant, with Endesa owning 44%, but that marriage ended in a bitter divorce (see related news), with several court cases, after the plant closed and the two companies disagreed over the future of the plant. Separately, they competed in the Pego connection point tender, which Endesa won.

How are assets divided?