NEWS
Combining strengths
Astaldi Acquistion By Webuild Completed
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taly’s biggest construction group, Webuild, has completed the acquisition of its 65% stake in Astaldi, a fellow Italian construction company which was recently on the brink of bankruptcy, in a deal worth €225 million. The acquisition will establish Webuild formerly called Salini Impregilo - as a major global player in the construction sector, with a backlog of orders totalling at over €40 billion. Webuild first put its acquisition offer to Astaldi in February 2019. At that time, Astaldi was in the process of securing protection from its creditors so it could buy time to restructure. The embattled construction firm then submitted Webuild’s offer to the Court of Rome for approval. The deal, which was accepted by Astaldi shareholders, creditors and the courts, saw the liquidation of some of the company’s non-core assets in order
to pay off some debts to creditors. The shedding off these assets also allowed Webuild to take a controlling share in Astaldi without inheriting its debts. These assets included its stake in the Gebze-Orhangazi-Izmir highway, and Etlik health campus, both in Turkey, and the Santiago airport and Felix Bulnes hospital in Chile. According to Webuild’s own data, the construction sector represents 8% of Italy’s economy and employs half a million people. The company said that the investment will bring it “closer to what its foreign competitors enjoy: a strong presence in their home markets”. The Astaldi acquisition was part of the ‘Project Italy’ plan, launched by Salini Impregilo in 2019. The aim of the project is to aid in the revival of the Italian construction industry through the creation of a single major construction hub.
Astaldi, which has completed major projects worldwide such as the Yavuz Sultan bridge over the Bosphorus in Istanbul, and the world’s largest optical telescope - the ELT - in Chile, is one of three companies acquired by Webuild as part of Project Italy. As part of the project, Webuild is now in the process of taking control of Seli Overseas SpA and Grandi Lavori Srl, which owns GLF Construction (USA). visit: www.webuildgroup.com/en
Panasonic, Norsk Hydro, Equinor Consider “Green Battery” Plant In Norway
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apanese tech giant Panasonic is teaming up with two Norwegian companies, Norsk Hydro and Equinor, to explore the possibilities for establishing a European “green battery” business, with the continent’s automotive sector as potential customers. In a press release, the companies said they “will work together towards summer 2021 to assess the market for lithium-ion batteries in Europe and mature the business case for a green battery business located in Norway.” Despite having a stake in the world’s largest battery factory, along with Tesla in Nevada, Panasonic’s presence in Europe is somewhat limited. The company appears to be attempting to use its success as
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a Tesla supplier in the US as a springboard to gain new business from Europe’s automotive sector. Demand for lithium-ion batteries is set to increase rapidly as more and more countries are setting dates for the phasing out of petrol and diesel cars. Norway, which is heavily reliant on revenues from oil and gas, is aiming to become the first country to end the sale of fossil-fuel-powered cars, having set a 2025 deadline. Electric vehicle sales already account for 60% of new car sales in the country. Locating the factory in Norway also comes with the advantage of a lowered carbon footprint as, despite being an oil and gas exporter, the country is almost entirely powered by renewable hydroelectric energy. Mototsugu Sato, Executive Vice President of Panasonic, said the partnership with Norsk Hydro and Equinor was a superb opportunity for the company to expand in Europe. “Panasonic has powered the last two revolutions in the automotive industry – first by powering hybrids and now, by powering multiple generations of all-electric vehicles. We are pleased to enter into this initiative to explore implementing sustainable, highly advanced technology and supply chains to deliver on the exacting needs of lithium-ion battery customers and support the renewable energy sector in the European region,” said Sato.
The size of the factory will depend heavily on the results of the six-month study. Some analysts have said it will be of a similar size to the Nevada gigafactory, which is soon to be upgraded to 38 gigawatt hours a year. The Northvolt-owned factory in neighbouring Sweden, close to the Arctic Circle, is set to have a capacity of 34GWh by 2024, with the possibility of being upgraded to 40GWh. Al Cook, Executive Vice President of Global Strategy & Business Development in Equinor, said: “We believe that battery storage will play an increasingly important role in bringing energy systems to net-zero emissions. By pooling our different areas of energy expertise, our companies will seek to create a battery business that is profitable, scalable and sustainable.” The battery makes up around 40% of an electric car’s value, and the market is burgeoning. At present, China produces around two-thirds of the world’s batteries and the EU is eager to increase its own share from its current 3% up to 25% by 2028. In December 2019, the European Commission gave the go-ahead to a funding package of €3.2 billion for research and development into battery technology as part of a push by Brussels to grab a share of the marketplace and become less reliant on imported batteries from China. visit: www.panasonic.com/global/home.html
