RWE strengthens its renewable energy business in the United States with a $6.8 billion acquisition.
The energy group is buying the solar system developer and operator Con Edison Clean Energy Businesses from the regional supplier Con Edison from New York, as it announced on Saturday evening in Essen.
With the takeover, which is equivalent to 6.9 billion euros (including debt), RWE has almost doubled its portfolio of wind, solar and battery storage systems in America and now has an installed capacity of 7.2 gigawatts (GW).
In terms of financing, the Essen-based group is receiving support from Qatar's sovereign wealth fund, QIA, which is subscribing to a 2.43 billion euro mandatory convertible bond.
This means that QIA can take a good nine percent stake in RWE, making it its largest shareholder.
"The takeover of Con Edison Clean Energy Businesses means an enormous boost for RWE's green expansion in the United States, one of the most attractive and fastest growing markets for renewable energies," CEO Markus Krebber explained the acquisition.
This will make RWE the number two operator of solar power plants in the United States and number four for renewable energy sources overall.
Around 90 percent of Con Edison Clean Energy's three GW of installed capacity is solar.
In addition, according to RWE, there is a development pipeline of another seven GW, which will increase the group's project pipeline there to 24 GW.
The takeover is expected to be completed in the first half of 2023.
Con Edison Clean Energy is expected to contribute an operating result (Ebitda) of 600 million dollars to RWE's profit in the first year.
The group had already planned 15 billion euros for investments in “green energies” in the United States.
"I am pleased that QIA is supporting RWE's ambitions to grow faster and stronger with additional equity," said Krebber.
RWE wants to finance the part of the purchase price that QIA does not pay with loans.