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

BERLIN (Reuters) – Germany’s largest energy producer RWE AG (OTC:) mentioned on Saturday it had agreed to purchase Con Edison Inc’s Clear Vitality Companies subsidiary for $6.8 billion, doubling down on the world’s second-biggest renewables market.

The deal will likely be partly funded by way of a $2.43 billion convertible bond issued to a unit of Qatar Funding Authority (QIA) by which the fund will grow to be a 9.1% shareholder in RWE.

The transaction will almost double RWE’s U.S. renewables portfolio to greater than 7 gigawatts (GW) and develop its regional undertaking pipeline by 7 GW to greater than 24 GW.

The transaction, which is anticipated to shut within the first half of 2023, will make RWE the fourth-largest renewables participant within the U.S. market, which performs a key function within the firm’s inexperienced growth.

“Our fairness capital measure is the idea for financing the acquisition of Con Edison CEB and of the extra inexperienced progress within the years to return,” RWE Chief Government Markus Krebber mentioned.

“I’m delighted that QIA is supporting RWE’s accelerated progress ambitions with their capital dedication.”

The deal, the most important for RWE for the reason that breakup of former division Innogy introduced in 2018, will likely be earnings accretive immediately, giving RWE further core earnings (EBITDA) of $600 million a 12 months.

It comes neearly a 12 months after RWE fleshed out its world renewables roadmap, which incorporates 50 billion euros ($49 billion) of gross investments by 2030, with 15 billion earmarked for america.

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

($1 = 1.0205 euros)