RWE to Buy Con Edison Clean Energy Unit for $6.8 Billion

  • In Business
  • 2022-10-01 23:27:50Z
  • By Bloomberg

(Bloomberg) -- German utility RWE AG agreed to buy Consolidated Edison Inc.'s renewable energy assets for $6.8 billion, in one of the biggest green deals in US history.

Most Read from Bloomberg

  • Gazprom Halts Gas Supplies to Italy in Latest Energy Battle

  • Marjorie Taylor Greene's Husband Files for Divorce After 27 Years

  • MacKenzie Scott Files for Divorce From Science Teacher Husband

  • Walmart, CVS Face Suits Blaming Common Painkiller for Autism

  • Top Apple Executive Is Leaving After Making Crude Remarks in TikTok Video

The deal will almost double RWE's renewables portfolio in the US to more than 7 gigawatts, the company said in a statement. The financing will initially be provided by a bridge loan, which will be partly refinanced by a convertible bond to a subsidiary of Qatar Investment Authority with an aggregate principal amount of 2.43 billion euros ($2.38 billion).

The deal "is a major boost for RWE's green expansion in the US, one of the most attractive and fastest growing markets for renewable energy," Chief Executive Officer Markus Krebber said in a statement.

RWE has been benefiting from the market turmoil in Europe's power and gas markets since Russia waged war on Ukraine. The German utility raised its earnings outlook for the year to reflect expectations 30% higher than a previous forecast. The company had earmarked up to 15 billion euros for investment in the US as part of its Growing Green strategy, which envisages global investment of 50 billion euros by 2030.

Con Edison, which supplies electric service in New York, parts of New Jersey, and Pennsylvania as well as to wholesale customers, has a market value of about $30.4 billion. The company announced in February it was exploring strategic alternatives for the clean-power business.

In a separate statement, Con Edison said it intends to forego a previously announced plan to issue up to $850 million of common equity this year and withdraw its equity guidance for 2023 and 2024.

"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," Con Edison CEO Timothy Cawley said.

Barclays was the financial adviser to Con Edison, while Latham & Watkins LLP was its legal adviser.

(Updates with Con Edison statement, advisers starting from sixth paragraph)

Most Read from Bloomberg Businessweek

  • The Unstoppable Dollar Is Wreaking Havoc Everywhere But America

  • Jay Powell Needs Investors to Lose Money

  • Twitter Is in This Mess Because Jack Dorsey Was Too Busy Being a Bitcoin Influencer

  • The World Sees Brazil's Election as a Climate Flashpoint. Brazilians Have Other Concerns

  • Would You Invest $10,000 in a Friend's Startup? Are You Friends If You Don't?

©2022 Bloomberg L.P.


More Related News

Houston Shutters Schools as Power Outages Imperil Water Supply
Houston Shutters Schools as Power Outages Imperil Water Supply

(Bloomberg) -- Houston ordered schools to close and warned residents not to drink tap water without first boiling it after power outages shut treatment...

Two energy storage firms win £14m for new technologies
Two energy storage firms win £14m for new technologies

Scottish companies Sunamp and StorTera have been awarded the cash from a UK government competition.

India City Plans Nation
India City Plans Nation's First Retail Muni Bond for Solar Plant

(Bloomberg) -- An Indian city with a strong environmental record is planning to issue the nation's first local government bond targeting individual investors...

Stagflation Will Rule 2023, Keeping Stocks in Peril
Stagflation Will Rule 2023, Keeping Stocks in Peril

(Bloomberg) -- Stagflation is the key risk for the global economy in 2023, according to investors who said hopes of a rally in markets are premature...

Egypt Currency Makeover Still Untested, But That May Change Soon
Egypt Currency Makeover Still Untested, But That May Change Soon

(Bloomberg) -- Most Read from BloombergNext Covid-19 Strain May be More Dangerous, Lab Study ShowsUkraine's Victories May Become a Problem for the USThe...

Leave a Comment

Your email address will not be published. Required fields are marked with *

Cancel reply


Top News: Business