German RWE buys Con Edison’s renewable portfolio for $6.8 billion


German power company RWE said on Saturday it would buy Con Edison’s Clean Energy Businesses subsidiary in a deal valuing the unit at $6.8 billion.

RWE said the acquisition would add some $600 million in earnings before interest, tax, depreciation and amortization (EBITDA) to its annual results.

It would also double RWE’s renewable energy portfolio in the United States to more than 7 gigawatts of operational assets, and increase its project pipeline in that country to more than 24 GW of onshore wind energy. , solar and batteries.

RWE said the transaction would be financed by issuing a mandatory convertible bond of 2.4 billion euros ($2.35 billion) to a subsidiary of the Qatar Investment Authority.

This would eventually become shares representing just under 10% of RWE’s share capital. Its plans for a dividend of 0.90 euros per share remain unchanged, RWE added. ($1 = 1.0205 euros) (Reporting by Thomas Escritt; Editing by Alexander Smith)



Source link -88