The agreement between RWE and Con Edison Clean Energy Businesses will nearly double the company’s portfolio of renewable energy sources in the US.
Through the acquisition, RWE will have access to Con Edison subsidiaries with a development pipeline of more than 7GW and operating capacity of roughly 3GW, 90% of which is solar.
When everything is finished, RWE will be the second-largest solar operator in the US and the fourth-largest provider of renewable energy.
RWE’s operating asset base in the US is nearly doubled to 7.2GW when the very complementary portfolios of Con Edison CEB and RWE are combined.
The purchase price is based on an enterprise value of $6.8 billion, and from the first year on, the earnings-accretive acquisition will increase EBITDA by about $600 million.
RWE’s US footprint expands at the same time across the great majority of US states. A balanced portfolio of onshore wind, solar, and batteries is also produced by the innovative merger of the two companies.
One of the largest development platforms for renewable energy in the US is provided by a combined project pipeline of more than 24GW in onshore wind, solar, and batteries.
Growth from the acquisition will be in addition to RWE’s current objectives for US growth. As part of its Growing Green plan, which calls for global investments of 50 billion euros gross by 2030, RWE had already set aside up to 15 billion euros gross for projects in the US.
With a strong team of 500 specialists, Con Edison CEB has a long history of successfully planning, building, and managing renewable energy projects. A high-performing workforce of around 1,400 workers from both businesses will be completely devoted to the green energy transition and will accelerate RWE’s growth objectives in the US in the coming years.
The transaction is expected to close in the first half of 2023, subject to usual regulatory approvals.
Markus Krebber, RWE CEO, said “Our equity capital measure is the basis for financing the acquisition of Con Edison CEB and of the additional green growth in the years to come. I am delighted that QIA is supporting RWE’s accelerated growth ambitions with their capital commitment. This underlines our strategy to be one of leading drivers of the global energy transition.“