RWE Aktiengesellschaft has agreed to acquire Con Edison Clean Energy Businesses (Con Edison CEB) and its subsidiaries from US-based Consolidated Edison (Con Edison) for $6.8bn.
The acquisition will be executed by the German renewable energy company’s subsidiary RWE Renewables Americas.
Based in Valhalla, New York, Con Edison CEB operates and develops renewable energy facilities in the US. The company has an operating capacity of around 3GW, of which 90% is from solar power.
Con Edison CEB has over 7GW of renewable energy assets in development. The company has a workforce of nearly 500.
Con Edison chairman and CEO Timothy Cawley said: “The transaction we announced today will allow Con Edison to sharply focus on our core utility businesses and the investments needed to lead New York’s ambitious clean energy transition.
“RWE, in turn, is well positioned to accelerate the growth of renewable energy across the United States.”
For RWE, the acquisition of Con Edison CEB increases its operating renewable capacity in the US by nearly two times to 7.2GW.
Apart from widening its footprint in the US, the deal will help RWE boost its project pipeline of onshore wind, solar, and batteries in the US to more than 24GW.
The deal, once completed, is expected to place RWE as the fourth largest renewable energy company and the second largest solar power operator in the US.
It follows an investment of €2.42bn secured by RWE from Qatar Investment Authority (QIA) to support its accelerated ‘Growing Green’ strategy.
RWE CEO Markus Krebber 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 U.S. market.
“The combined development pipeline, one of the largest in the U.S., provides tremendous opportunities for sustainable and value accretive growth, backed by a strong financial position.”
The deal, which is subject to approvals from the Committee on Foreign Investment in the US, the Federal Energy Regulatory Commission, and other regulatory approvals and conditions, is expected to close in H1 2023.
