Toyota Tsusho, a division of Toyota Group, has recently completed the acquisition of an 85% stake in SoftBank Group's renewable energy unit, SB Energy. The remaining 15% stake in the business will be retained by SoftBank. The acquisition was signed in February of this year and the financial terms of the deal were not disclosed.
Following the acquisition, SB Energy has now become a subsidiary of Toyota Tsusho and has been rebranded as Terras Energy. This move is expected to make Terras Energy one of Japan's largest power producers in wind and solar with a capacity of nearly 4.5GW, including 3.18GW in wind and 1.02GW in solar power.
The main objective of the deal was to maximize the synergies between the renewable energy businesses of both the companies. Toyota Tsusho plans to put Terras Energy's renewable technologies to use by speeding up the creation of new businesses to promote carbon-neutral initiatives and technological advancements in the renewable energy space.
Moreover, Toyota Tsusho and SoftBank are planning to work together on the joint development of renewable energy, electric power supply, and demand adjustment, with a target to achieve carbon neutrality. This acquisition is in line with Toyota Tsusho's aim to reduce greenhouse gas emissions by 50% from its 2019 level by 2030 and attain carbon neutrality by 2050.
In a recent statement, Toyota Tsusho said, “The acquisition of SB Energy is part of our effort to expand our business portfolio in response to the global trend of decarbonization, which is progressing at an accelerating pace.” The statement added, “By utilizing the expertise and know-how accumulated by SB Energy, we will work together with SoftBank to create a new business model that leads to a decarbonized society.”
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SB Energy was established in 2011 after the Fukushima nuclear disaster in Japan. Since then, the company has been building and operating renewable energy projects in Japan, Mongolia, and the US. The acquisition of SB Energy by Toyota Tsusho is a significant step towards achieving a decarbonized society and promoting sustainable development.
As the world moves towards a cleaner and greener future, the acquisition of SB Energy by Toyota Tsusho is an excellent example of how companies can work together to achieve common goals. With this acquisition, Toyota Tsusho aims to lead the way in the transition to a decarbonized society, and its efforts will undoubtedly have a positive impact on the environment and society as a whole.
