Qatar Investment Authority Helps Fund RWE’s Acquisition of Con Edison Clean Energy Businesses
Posted on 10/02/2022
The Qatar Investment Authority (QIA) agreed to invest EUR 2,427.6 million in RWE AG (RWE) to support RWE’s accelerated “Growing Green” strategy.
RWE will issue a mandatory convertible bond to a subsidiary of QIA. The bond will be converted into new ordinary bearer shares expected to represent just under 10% of RWE’s existing share capital (and approximately 9.09% of the enlarged share capital post conversion).
The proceeds of the mandatory convertible bond will be applied towards the acquisition of Con Edison Clean Energy Businesses.
Markus Krebber, CEO of RWE AG, said in a press release, “I am delighted that QIA is supporting RWE’s accelerated growth ambitions through this investment. This further demonstrates our commitment to be one of the world’s leading drivers of the global energy transition. QIA‘s long-term capital commitment enables RWE to finance the acquisition of Con Edison Clean Energy Businesses and hence will drive our additional green growth in the years to come.”
Mansoor bin Ebrahim Al-Mahmoud, CEO of QIA, said in a press release, “We are proud to support RWE’s vision to become a leader in the global renewable energy market. QIA is actively investing in companies that can have a positive impact on society and shape the future of sustainability by making energy transition a reality.”
Con Edison Clean Energy Businesses
RWE AG signed a purchase agreement with Con Edison, Inc. to acquire all shares in Con Edison Clean Energy Businesses, Inc. (Con Edison CEB). Headquartered in Valhalla, New York, Con Edison CEB is a leading operator and developer of renewable energy plants in the United States, with about 3 gigawatts (GW) of operating capacity, thereof 90% in solar energy, and a strong development pipeline of more than 7 GW.
Combining RWE’s and Con Edison CEB’s highly complementary portfolios almost doubles RWE’s operating asset base in the U.S. to 7.2 GW. At the same time, RWE’s U.S. presence becomes more widely spread across the vast majority of U.S. states. The unique combination of both businesses also leads to a perfectly balanced portfolio across onshore wind, solar and batteries.
RWE and Con Edison have agreed on a purchase price based on an enterprise value of US$ 6.8 billion.