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(Bloomberg) — German utility RWE AG has agreed to buy the renewable energy assets of Consolidated Edison Inc. for $6.8 billion, in one of the most important green deals in US history.
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The deal will nearly double RWE’s renewable energy portfolio in the US to more than 7 gigawatts, the company said in a statement. The financing will initially be provided through a bridge loan, which will be refinanced in part with a convertible bond to a subsidiary of Qatar Investment Authority with a total principal amount of €2,427.6 million.
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The deal “is an important boost for RWE’s green expansion in the United States, one of the most attractive and fastest-growing markets for renewable energy,” CEO Markus Krebber said in a statement.
RWE has benefited from turmoil in Europe’s energy and gas markets since Russia went to war in Ukraine. The German company raised its earnings forecasts for the year to reflect expectations 30% higher than previous forecasts. The company had earmarked up to 15 billion euros for investments in the US as part of its Growing Green strategy, which envisages a global investment of 50 billion euros by 2030.
Con Edison has a market value of about $30.4 billion. The company announced in February that it was exploring strategic alternatives for the clean energy business.
