Home Editor's Picks Germany’s RWE buys Con Edison clean energy in $6.8 billion U.S. shift

Germany’s RWE buys Con Edison clean energy in $6.8 billion U.S. shift

by

Germany’s RWE buys Con Edison renewable portfolio for $6.8 billion By Reuters

Breaking News

‘;

Stock Markets 7 hours ago (Oct 02, 2022 02:55AM ET)

(C) Reuters. FILE PHOTO: A RWE logo is seen in this illustration taken October 20, 2021. REUTERS/Dado Ruvic/Illustration/File Photo

By Thomas Escritt and Christoph Steitz

BERLIN (Reuters) -Germany’s largest power producer RWE AG (OTC:RWEOY) has agreed to buy Con Edison Inc’s Clean Energy Businesses subsidiary for $6.8 billion, doubling down on the world’s second-biggest renewables market.

The deal will be partly funded via a $2.43 billion convertible bond issued to a unit of Qatar Investment Authority (QIA) through which the fund will become a 9.1% shareholder in RWE.

Con Edison said it was scrapping plans to issue up to $850 million in new shares this year and withdrawing equity guidance for the next two years. It said the deal would allow it to focus on its core utility business and New York’s clean energy transition.

The transaction will nearly double RWE’s U.S. renewables portfolio to more than 7 gigawatts (GW) and grow its regional project pipeline by 7 GW to more than 24 GW.

Following the takeover, solar will account for 40% of RWE’s U.S. portfolio, up from 3% now, according to presentation slides.

“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,” RWE Chief Executive Markus Krebber said in a statement late on Saturday.

“I am delighted that QIA is supporting RWE’s accelerated growth ambitions with their capital commitment.”

The transaction, which is expected to close in the first half of 2023, will make RWE the fourth-largest renewables player in the U.S. market, which plays a key role in the company’s green expansion, though still far behind largest player NextEra, with some 58 GW of generating capacity.

QIA CEO Mansoor bin Ebrahim Al-Mahmoud said the fund was proud to support RWE in its efforts to become a global renewables leader.

QIA’s investment in RWE expands Qatar’s relationship with Europe’s largest economy, which already includes stakes in Volkswagen (ETR:VOWG_p), Deutsche Bank (ETR:DBKGn) and Porsche.

The deal, the biggest for RWE since the breakup of former division Innogy announced in 2018, will be earnings accretive right away, giving RWE additional core earnings (EBITDA) of $600 million a year.

It comes nearly a year after RWE fleshed out its global renewables roadmap, which includes 50 billion euros ($49 billion) of gross investments by 2030, with 15 billion earmarked for the United States.

Con Edison CEO Timothy Cawley said RWE was “well-positioned to accelerate the growth of renewable energy across the United States.”

Con Edison was advised by Barclays (LON:BARC) and Latham and Watkins on the deal.

RWE, which confirmed plans to pay a dividend of 0.90 euro per share for 2022, will primarily boost its U.S. solar portfolio and pipeline as part of the deal.

($1 = 1.0205 euros)

Germany’s RWE buys Con Edison renewable portfolio for $6.8 billion

China JD.com founder Liu settles U.S. rape civil suitBy Reuters – Oct 02, 2022

By Casey Hall SHANGHAI (Reuters) – Billionaire Richard Liu, founder of one of China’s largest e-commerce platforms JD (NASDAQ:JD).com, has settled a civil suit brought by former…

Stellantis boss expects chip supply to remain ‘complicated’ until end 2023By Reuters – Oct 02, 2022

PARIS (Reuters) – The head of carmaker Stellantis, Carlos Tavares, expects the semiconductor supply chain to remain tight until the end of next year, he said in an interview…

Shareholder, regulator pushback ended UBS-Wealthfront deal, SonntagsZeitung reportsBy Reuters – Oct 02, 2022

ZURICH (Reuters) – Resistance from shareholders and United States regulators torpedoed Swiss bank UBS’s $1.4 billion bid for U.S. digital wealth management group Wealthfront,…

Our Apps



Terms And Conditions
Privacy Policy
Risk Warning

(C) 2007-2022 Fusion Media Limited. All Rights Reserved.

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.

Related News