Status: 02.10.2022 19:12
RWE acquires a US solar specialist for $6.8 billion. The deal is co-financed by Qatar’s sovereign wealth fund, making it the largest shareholder in the Essen energy provider.
RWE strengthens its renewable energy business in the US with an acquisition of almost seven billion euros. The energy group is buying solar systems developer and operator Con Edison Clean Energy Businesses from New York regional provider Con Edison. Completion of the transaction is still subject to official approvals and, according to RWE, is expected to take place in the first half of 2023.
The $6.8bn (€6.9bn) acquisition, including debt, says RWE has almost doubled its portfolio of wind, solar and battery storage facilities in the US and now has an installed capacity 7.2 gigawatts.
Qatar increases its stake in RWE through co-financing
For RWE, it is the largest acquisition since Innogy’s spin-off in 2018. The Essen-based group is receiving financial support from Qatar’s sovereign wealth fund, QIA. This attracts a mandatory convertible bond of €2.43 billion. This means that QIA can take a nice nine per cent stake in RWE and become its largest shareholder. The Gulf state is already involved in Germany with Deutsche Bank, Volkswagen and Porsche.
“The acquisition of Con Edison Clean Energy Businesses represents a huge boost for RWE’s green expansion in the US, one of the fastest growing and most attractive renewable energy markets,” said CEO Markus Krebber. This will make RWE number two in the US among solar system operators and number four overall for renewables. However, the distance with number one, NextEra, which has an installed capacity of 58 gigawatts, is great.
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