French contractor Bouygues has announced plans to purchase Equans, the services subsidiary of utility Engie.
Equans, which employs 74,000 people across 17 countries, and has an annual turnover exceeding €12bn, will be integrated into Bouygues’ Energies & Services arm. This will make the branch the company’s largest business segment by employee number and sales.
Cost estimates vary, with Bouygues citing a deal worth €6.7bn, but Engie saying the deal is priced at €7.1bn.
Bouygues has agreed to not implement any forced redundancies in France or Europe, and had pledged the creation of 100,000 jobs within five years of the deal being finalised.
Engie says Equans’ sale will allow it to focus on its core renewable energy business and is in line with its goal of reaching net zero by 2045.
Martin Bouygues, Bouygues’ chairman, 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.”
Olivier Roussat, Bouygues’ chief executive, said: “I am delighted that Engie has accepted our offer. 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.
“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.”
If passing regulatory approvals, the deal is due to be finalised in the second half of 2022.
The acquisition has been approved unanimously by Bouygues’ board of directors.
