German renewable energy-focused power provider RWE announced the acquisition of Con Edison Clean Energy Businesses (Con Edison CEB) at an enterprise value of $6.8 billion, in a deal expected to vault RWE to become one of the largest renewable energy players in the U.S.
The deal, backed by Qatar’s sovereign wealth fund, QIA, will nearly double RWE’s renewables portfolio in the U.S. to more than 7 GW of operating assets, and boost its U.S. project pipeline to more than 24 GW in onshore wind, solar and batteries. According to RWE, following the transaction, the company will become the U.S.’ #4 renewable energy company, and the country’s second largest solar operator.
Markus Krebber, CEO of RWE AG, said:
“The acquisition of Con Edison Clean Energy Businesses is a major boost for RWE’s green expansion in the United States, one of the most attractive and fastest growing markets for renewable energy. The unique combination of complementary portfolios in onshore wind, solar and batteries creates one of the leading renewable companies in the U.S. market.”
Con Edison Clean Energy Businesses is part of New York-based utility company Consolidated Edison’s (Con Ed) group of companies. Con Edison CEB is a operator and developer of renewable energy plants, operating through three subsidiaries, Con Edison Development, Con Edison Energy, and Con Edison Solutions. The company currently has approximately 3 GW of operating capacity, roughly 90% in solar energy, and a 7 GW development pipeline.
Con Edison Chair and CEO Timothy Cawley said:
“The transaction we announced today will allow Con Edison to sharply focus on our core utility businesses and the investments needed to lead New York’s ambitious clean energy transition. RWE, in turn, is well positioned to accelerate the growth of renewable energy across the United States.”
Concurrent with the acquisition, RWE announced that Qatar’s sovereign wealth fund has agreed to invest over €2.4 billion in RWE through a mandatory convertible bond, which will convert into shares representing nearly 10% of RWE’s existing share capital.
Mansoor bin Ebrahim Al-Mahmoud, CEO of QIA, said:
“We are proud to support RWE’s vision to become a leader in the global renewable energy market. QIA is actively investing in companies that can have a positive impact on society and shape the future of sustainability by making energy transition a reality.”