TotalEnergies get clarity on compliance due diligence for the acquisition of the African assets of a target acquisition

Results

  • The due diligence report was used in the final sale and purchase negotiations and proved to be invaluable in protecting TotalEnergies from any potential areas of compliance risk related to the transaction
  • Full counterparty due diligence refresh in line with TotalEnergies’ robust policy and process and regulatory timescales
  • The customisation and implementation of the Navigator platform in line with TotalEnergies own rules resulted in the swift and efficient mitigation of one of the major risk areas of the transaction

Solutions

  • In depth risk assessment of target acquisition’s compliance programme with a focus on third party due diligence in Africa
 
  • Customisation and implementation of the Navigator platform in order to refresh all existing counterparty due diligence

Navigilant’s SaaS and advisory services deliver an in-depth compliance risk review and third party due diligence enhancement programme

Navigilant was engaged by TotalEnergies to carry out compliance due diligence on an acquisition target, to obtain operational control, in Africa. The scope of the due diligence covered all aspects of compliance relating to anti-bribery and corruption, anti-money laundering, fraud, international sanctions and human rights.

Working in partnership with TotalEnergies, the programme was designed to establish the status of the target’s ethics and compliance programme relative to TotalEnergies’ own programme, relevant regulatory requirements and accepted best practice. As part of this approach, Navigilant was responsible for identifying any particular risk areas for specific further investigation, pre or post transaction, including any items for inclusion in the sale and purchase agreement. In addition, Navigilant was required to create and maintain an integration roadmap, prioritised by risk level, to direct integration activity towards the most appropriate areas.

Our advisory services team produced a full due diligence report with analysis of risks, gaps and comparison to best practice approaches for the country and business being acquired. Within this report, Navigilant prioritised recommendations for integration and highlighted the immediate actions required to ensure risk levels could be addressed and mitigated.

During this phase of work, significant compliance risk in the supply chain was identified. Consequently, post transaction, Navigilant were re-engaged to support TotalEnergies by undertaking a complete refresh of the target acquisition’s existing counterparty due diligence portfolio in Africa. Using the Navigator platform, the goal was to meet TotalEnergies’ own robust standards and ensure risk levels could be brought down to an acceptable level.

The platform was quickly customised to meet TotalEnergies’ needs, replicating its existing due diligence rule and process. Navigilant’s experts worked alongside the global TotalEnergies team in order to implement the Navigator platform and complete full due diligence on over 500 counterparties swiftly and efficiently to meet the tight timescales imposed by global regulators.

The project was completed during Covid lockdown. Through the use of the Navigator platform, TotalEnergies’ staff in various parts of the world were able to use the system, interacting with counterparties, reviewing files and completing approvals and escalations.


About TotalEnergies

www.totalenergies.com

TotalEnergies is a global multi-energy company that produces and markets energies: oil and biofuels, natural gas and green gases, renewables and electricity. More than 100,000 employees are committed to energy that is ever more affordable, cleaner, more reliable and accessible to as many people as possible. Active in nearly 130 countries, TotalEnergies puts sustainable development in all its dimensions at the heart of its projects and operations to contribute to the well-being of people.

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