RWE has been selected by Nordex as exclusive bidder for the acquisition of the turbine manufacturer’s European onshore wind and solar development business in a deal that could add 2700MW to the company’s pipeline.
The €402.5m deal covers projects in Spain, Sweden and Poland, with a strong focus on France where Nordex has 1.9GW of projects in various stages. 1.8GW of these are wind projects with 0.1GW of solar PV.
RWE said 15% of the pipeline was in advanced development stages or close to final investment decisions, with 230MW in receipt of Contracts for Difference or similar tariffs.
The development platform comes with a team of more than 70 mostly France-based employees and adds to RWE’s existing 22GW pipeline.
“The quality of the underlying assets and our consistent development track record have resulted in a strong interest for our project development pipeline from multiple market participants crystallising an excellent outcome for Nordex,” commented Nordex Group chief executive Jose Luis Blanco.
“Significant proceeds from this transaction would strengthen our balance sheet as we continue to build on our strong order book and capture market opportunities with our Delta 4000 product portfolio.”
RWE chief financial officer Markus Krebber said the deal represented a “unique growth opportunity” for due to Nordex’s “large and attractive existing project pipeline and strong development platform”.
He added: “The planned acquisition of this leading European renewables developer will strengthen our position in France, one of our target markets.”
RWE Renewables chief executive Anja-Isabel Dotzenrath said France was “one of the most attractive markets in Europe and characterised by ambitious renewable energy targets”.
She added: “We are looking forward to working together with the experienced team which comes with a strong track record in the development of renewables projects. The transaction leverages our growth ambitions in France in the fields of offshore and onshore wind as well as large solar plants and battery storage.”
As a part of its value chain offering in some markets, the Nordex Group develops its own portfolio of wind farm projects, which are then sold onto customers or investors.
The company said it would continue with its wind developments in its other markets.
Closure is expected in Q4 2020. The deal will be subject to foreign investment approval in France as well as consultation with the staff council in the country, and completion of customary spin-off processes.
Rothschild & Co acted as an exclusive financial adviser to Nordex.