Con Edison announces agreement to sell to RWE Renewables Americas in a transaction valued at $6.8 billion.
A sales agreement
Con Edison formalizes a transaction subject to customary closing conditions. These conditions include the expiration or early termination of the waiting period. This principle of termination is done under the Hart-Scott-Rodino Antitrust Improvements Act of 1976.
There are no financing conditions attached to the transaction. In addition, the sale is expected to close in early 2023 subject to compliance with all conditions of sale. Thus, the transaction is expected to be completed in the first half of 2023.
A strategic objective
Con Edison’s strategy evolves with this sale. The group is abandoning its previous plan to issue up to $860 million of common shares in 2022. The company is withdrawing its stock forecasts for 2023 and 2024.
Timothy P. Cawley, Con Edison’s president and CEO says:
“The transaction we announced today will allow Con Edison to focus on our core utility business and the investments needed to lead New York’s ambitious transition to clean energy.”
The statement highlights the group’s goal of transitioning to clean energy in New York. In addition, Con Edison continues to make significant investments in multiple green projects.
An environmental objective
The sale agreement is with RWE, a global leader in the renewable energy generation industry. Con Edison is stepping up its clean energy transmission and building electrification projects. Energy efficiency, electric vehicle infrastructure and storage also remain a priority.
Timothy P. Cawley emphasizes Con Edison’s commitment to this dual objective, ecological and strategic. The company remains confident in its ability to meet the clean energy needs of the future. In addition, it ensures a profitability that offers reliability to its customers.
