RWE, a German energy company, has agreed to acquire all of Con Edison Clean Energy Businesses (Con Edison CEB) for $6.8 billion. Con Edison CEB, based in Valhalla, New York, operates and develops renewable energy plants around the US. The company has around 3 GW of operational capacity, with solar projects accounting for 90 per cent of the total.
According to the agreement, RWE’s renewable energy operating base in the country will increase by double to more than 7 GW. Additionally, it will boost the German company’s pipeline of US projects, which includes onshore wind, solar, and batteries, to more than 24 GW. RWE intends to use financial instruments and an equity capital measure to finance the deal and additional growth.
Subject to securing usual regulatory approvals, the deal is anticipated to close in the first part of 2023. A purchase price based on a $6.8 billion enterprise value, or an 11x multiple of enterprise value, has been agreed upon by RWE and Con Edison. Furthermore, the companies anticipate that their first year of collaboration will result in EBITDA of about $600 million.
In August 2022, RWE acquired Alpha Solar, a Polish PV development company with a 3 GW utility-scale solar project pipeline. Alpha Solar, a Warsaw-based company works on every step of the solar development process, from land acquisition to preparing it for construction. The company has three local offices in Inowrocaw, ód, and Rzeszów.
REGlobal’s Views: With the completion of this deal, RWE will become one of the top renewable energy companies in the United States market. Further, this transaction will help the company to diversify its geographical presence in the country and establish its position in one of the most attractive nations for renewable energy investments in the world.