The Fortescue Metals Group Limited (ASX: FMG) share price is higher this morning. Meanwhile, the company's boss is hitting headlines following a major renewable energy acquisition.
Squadron Energy, owned by the iron ore giant's founder and chair Andrew 'Twiggy' Forrest's investment vehicle Tattarang, has snapped up CWP Renewables for a widely reported sum of $4 billion.
Squadron Energy is entirely separate to Fortescue. Still, the news might have turned the market's attention to the S&P/ASX 200 Index (ASX: XJO) giant.
Right now, the Fortescue share price is $20.96, 1.26% higher than its previous close.
For comparison, the ASX 200 has fallen 0.71% at the time of writing. Simultaneously, the S&P/ASX 200 Materials Index (ASX: XMJ) has lifted 0.36% – making it today's best-performing sector so far.
Let's take a closer look at the announcement putting Forrest in the spotlight on Wednesday.
Image source: Getty Images
Twiggy snaps up renewable energy giant in $4b takeover
The Fortescue share price is outperforming amid news a massive acquisition has seen Squadron dubbed Australia's largest renewable energy investor, operator, and developer.
Forrest's privately-owned company officially bought CWP Renewables today, bringing its renewable energy operating portfolio to 2.4 gigawatts. It also now boasts an Aussie development pipeline of 20 gigawatts.
Once fully operational, Squadron's portfolio will be capable of powering 8.5 million homes.
Forrest commented on the takeover, saying:
Australian industries' ability to consign fossil fuel to history, is robustly demonstrated by the strong track record and commitment of Fortescue Metals, Fortescue Future Industries, and other world-leading companies committed to decarbonising.
We share a vision of Australia and the world, looking back on the dark era of fossil fuel as an aberration in humanity's history. One that could have ended with that fuel, but is now powered by cheap, pollution-free, democratic, inexhaustible energy.
CWP provides renewable energy to ASX 200 giants Woolworths Group Ltd (ASX: WOW), Transurban Group (ASX: TCL), and Commonwealth Bank of Australia (ASX: CBA).
Squadron beat out AGL Energy Ltd (ASX: AGL)'s Tilt Renewables for the acquisition, The Australian reports. Tilt was taken over by AGL's part-owned platform PowAR – since renamed Tilt – last year.
Fortescue share price snapshot
The Fortescue share price has outperformed over the course of 2022.
The stock is currently 6% higher than it was at the start of this year. It has also gained 20.5% since this time last year.
For comparison, the ASX 200 has slumped 5% year to date and 1% over the last 12 months.
