이 기사는 2021년 10월 01일 08시05분 thebell에 표출된 기사입니다

Hanwha Solutions’ 727 million euro ($844 million) takeover of French renewable firm RES Mediterranee, also referred to as RES France, is meaningful for the South Korean company, especially because the result has been achieved despite scarce attention to the company at the beginning of the high-profile bidding war.

Other potential buyers in the bidding race for RES France included French oil group Total and German power giant RWE. Hanwha Solutions, which was little known in France, beat out all of the rival bidders to become the winner of the takeover battle.

The effort was led by Goo Min, managing director and head of EU sales at Hanwha Solutions’ Q Cells, and Lee Tae-hwi, Q Cells’ investment head.

The two previously worked together when Hanwha acquired Q Cells in 2012. In the deal, Min led the acquisition as Hanwha’s senior executive, while Lee advised Hanwha at his previous employer, Citigroup Global Markets Securities.

In June this year when the bidding war was at its height, Lee flew to Europe to oversee the negotiation process with RES France. He had several in-person meetings with top officials from the renewables developer despite the Covid-19 pandemic, in an effort to build relationships and understand the needs of the seller.

As a result, Hanwha Solutions was selected as the preferred buyer for RES France in July. Its offer is said to have been little different from those from competitors. Yet Hanwha Solutions was able to take the upper hand in the bidding war, reportedly because it offered more favorable non-financial terms such as ensuring a speedy completion of the deal and its long-term strategy for RES France’s future growth.

Another hurdle cleared

French law requires that a consultation process with a company’s works council should precede an acquisition agreement. So the two parties first signed a put option agreement in August that granted RES France the right to sell a 100% stake to Hanwha Solutions for 727 million euros upon the consent of the French company’s works council.

Hanwha Solutions finally entered into a stock purchase agreement with RES France on Tuesday after the consent was obtained. The transaction is expected to close in early or mid-November.

Although a works council does not have veto power over mergers and acquisitions decisions, Hanwha Solutions made its best efforts to persuade council members as part of an effort to ensure a smooth deal and accelerate the company’s value creation.

Lee flew again to France in September and had discussions with the works council. A presentation made by his team reportedly received a positive response from council members.

On top of the growth strategy, the works council is said to have been pleased by low concerns about the corporate restructuring after the acquisition. Unlike most of the rival bidders, Hanwha Solutions has little overlapping business with RES France as it intends to use the deal to enter the French renewables energy market.

“The RES France takeover is a meaningful step for Hanwha Solutions to expand into the European renewables market,” a source close to the deal said. “The deal will also serve as an opportunity for RES France to leap forward, so it’s a win-win for both parties.” (Reporting by Gyoung-tae Kim)