Con Edison Divests Clean Energy Businesses To RWE For $6.8B
Consolidated Edison Inc (NYSE: ED) has entered into a purchase and sale agreement to sell its clean energy business and its subsidiaries to RWE Renewables Americas LLC, a subsidiary of RWE AG (OTC: RWEOY). The transaction is valued at $6.8 billion.
The transaction is expected to close in the first half of 2023.
Con Edison will forego its previously announced plan to issue up to $850 million of common equity in 2022 and withdraw its equity guidance for 2023 and 2024.
The company held $1.2 billion in cash and equivalents as of June 30, 2022.
"The transaction we announced today will allow Con Edison to sharply focus on our core utility businesses and the investments needed to lead New York's ambitious clean energy transition," said Chairman and CEO Timothy P. Cawley.
Price Action: ED shares closed lower by 2.17% at $85.76 on Friday.
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