Bouygues acquires Equans from Engie: our advice on the two actions – Boursorama

The construction and telecoms giant offers itself at a high price the multi-technical services of the energy company. Discover our analysis and our stock market advice on Bouygues and Engie shares following the announcement of this structuring transaction.

This is the largest acquisition in its history that the diversified group, still controlled and led by the family, is about to make. Bouygues.

At the end of a tight competitive process, Engie chose him to take over Equans, its multi-technical services center (electrical engineering, telecommunications, climate engineering, etc.). The transaction is expected to be completed in the second half of 2022.

With 74,000 employees, the acquired scope represents a turnover of 12.5 billion euros, or 36% of that of Bouygues in 2020. Bouygues plans to merge Equans with its Energy & Services division, which was lacking in size. critical so far. This new group will achieve a combined turnover of around 16 billion euros, becoming the group’s leading business in terms of volumes.

Synergies

Bouygues acquires Equans on the basis of an enterprise value of 7.1 billion euros (including the IFRS 16 debt), which would represent 11.4 times its expected current operating income in … 2026. A price considered high, especially since Equans’ profitability is quite low: around 3% of current operating margin. This explains the 5.82% drop in Bouygues shares on November 8, in reaction to the announcement of the transaction.

But the multi-technical service sector is

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