FOMENTO de Construccionesy Contratas SA, Spain's third-biggest builder, yesterday agreed to pay 780 million euros (US$1.2 billion) in cash and debt for Babcock & Brown Wind Partners' wind energy assets in the country.
FCC will pay 190 million euros and assume 590 million euros in debt to acquire Babcock Wind assets including 14 wind parks with capacity of 421 megawatts, the Barcelona-based company said in a filing to regulators.
The purchase marks the first investment in energy by FCC as it embarks on a 4-billion-euro drive announced in May to diversify its business as Spain's building market slumps, according to Bloomberg News.
The sale of the assets will yield a profit of about A$266 million (US$232 million) for Babcock Wind, the Sydney-based company said in a statement to Australian regulators.
"It's the first strategic operation in energy," FCC said in a statement.
Buying Babcock Wind's Spanish assets gives FCC the sixth biggest set of wind parks in the country with capacity to produce energy for a city of 200,000 people, FCC said. The transaction includes an additional 45 megawatts of capacity still under development, FCC said.