EU approves DONG Formosa 1 agreement
The European Commission has, in accordance with Regulation EU Merger Regulation, approved the proposed acquisition of joint control of Formosa 1 International Investment Taiwan between DONG Energy, Australia's Macquarie Capital and Swancor Holding in Taiwan.
Formosa 1 is an offshore wind farm to be developed, built and operated near Miaoli, Taiwan. The European Commission concluded that the proposed transaction would not raise competition concerns as the geographical area where the wind farm is built, belongs to Taiwan.
In January 2017, DONG Energy and Macquarie Capital reached an agreement to acquire a combined 85 percent stake in Formosa 1 from the developer, Swancor Renewable. The agreement is supported by the Taiwanese authorities, but is not finally approved.
Formosa 1 consists of two phases. Phase 1 has a total capacity of 8 MW and consists of two wind turbines, that were installed in October 2016. In Phase 2, an additional capacity of 120 MW will be built during 2019, subject to the final investment decision.
Formosa 1 is approximately three kilometers from the coast of Miaoli region in northwestern Taiwan. The agreement must also formally approved by the Investment Commission, which is part of Taiwan's Ministry of Economic Affairs. When that happens, the new owners of Formosa 1 will be: DONG Energy with 35 percent, Macquarie Capital with 50 percent and Swancor Industries with 15 percent.
DONG delivers advice, while Swancor Renewable is in charge of the project and ensures project development and construction. Macquarie Capital will work closely with DONG Energy and Renewable Swancor to support the development and construction.
Source: Offshore Wind / Maritime Denmark