Mitsui in Spanish renewables push

The Japanese firm is negotiating with Spain’s FCC to acquire joint control of the latter’s energy unit, which owns several renewable assets across Spain. FCC and Mitsui say they are now awaiting regulatory approval from the European Union.

Japanese industrial conglomerate Mitsui & Company is in the final stages of negotiations with Spanish developer Fomento de Construcciones y Contratas (FCC) to acquire joint control of FCC’s energy unit – FCC Energia.

In a statement last week to the Spanish competition authority, FCC announced that the deal has now been submitted to European Union authorities for regulatory approval. FCC did not disclose how much Mitsui will pay to acquire joint control of its energy unit.

FCC Energia owns over 540 megawatts (MW) of assets across Spain including 14 wind farms, two solar thermal energy plants, and two solar photovoltaic plants. In 2010, the unit recorded turnover in excess of €86 million and gross operating profits of just over €65 million, according to FCC Energia’s website.

If successful, this will not be the first time the Spanish developer and the Japanese firm have teamed up. Last year, the two companies reached financial close on the 50MW Guzman solar thermal power plant – one of the two plants in FCC Energia’s portfolio – securing a €226 million loan from Japanese bank Mizuho and Spain’s Banco Bilbao Vizcaya Argentaria (BBVA).

The Guzman plant is 70 percent-owned by FCC, with Mitsui holding the remaining 30 percent of the asset.