German energy giant RWE has agreed to buy Con Edison’s Clean Energy Businesses (CEB) in a deal worth $6.8 billion (£6bn).
The purchase will be partly funded by RWE issuing a $2.43 billion (£2.2bn) convertible bond to a Qatar Investment Authority (QIA) unit, through which the QIA will become a 9.1% shareholder in RWE.
Con Edison CEB is an operator and developer of renewable energy plants in the US, with around 3GW of operating capacity and a development pipeline of more than 7GW.
The acquisition significantly boost RWE’s project pipeline in the US to more than 24GW in onshore wind, solar power and batteries.
The German utility has already earmarked up to €15 billion (£13.2bn) investment in the US as part of its Growing Green strategy.
Markus Krebber, CEO of RWE 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 US market.
“The combined development pipeline, one of the largest in the US, provides tremendous opportunities for sustainable and value accretive growth, backed by a strong financial position. I am very pleased to welcome about 500 new colleagues. Together, we will form a powerful RWE team, strongly committed to contribute to the global energy transition.”
The deal closure is subject to customary regulatory approvals and is expected to take place in the first half of 2023.