In a further indication of the consolidation now underway in the carbon market, UK-based carbon trading specialist Trading Emissions Plc yesterday announced it will acquire renewable energy project operator Econergy International in a £27m deal.
The deal follows an earlier all paper take-over bid at nil premium from Trading Emissions Plc, which was rejected by Econergy as undervaluing the company. However, the firm has now accepted an improved offer that will see Econergy shareholders receive either 0.233 Trading Emissions shares for each Econergy share or a cash alternative of 30 pence per Econergy share.
Econergy International builds and operates renewable energy projects across the Americas. The company currently has one hydro-electric plant in operation in Bolivia and a further five projects under construction across Brazil, Costa Rica and the US.
Post-merger Trading Emissions Plc is expected to source carbon credits from these various projects. Econergy claims to have saved almost half a million tonnes in carbon emissions since the company was founded in 1994.
The deal provides further evidence that the growing maturity of the carbon market will result in an increase in merger and acquisition activity. The sector has seen several deals in the past year, most notably in the form of banking giant JP Morgan's acquisition of UK offset provider ClimateCare.
The announcement also comes a day after a new report from analyst firm New Carbon Finance claimed that the global voluntary carbon offset market trebled in value last year to $331m (£170m).
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