RWE, a renewable energy company, signed a purchase agreement with Con Edison, a renewable energy project developer, to acquire all shares in its subsidiary Con Edison Clean Energy Businesses.

The transaction is valued at $6.8 billion, subject to certain customary adjustments.

RWE, which constructs, owns, and operates wind, solar, and battery storage projects in the U.S., has more than 30 projects in operation in the U.S., with a total installed generation capacity of 4.1 GW in onshore wind, solar, and batteries.

According to RWE, the acquisition almost doubles its operating assets in the U.S to about 7.2 GW. It provides a combined project pipeline of more than 24 GW in onshore wind, solar, and batteries.

“The acquisition of Con Edison Clean Energy Businesses is a major boost for RWE’s green expansion in the United States, one of the most attractive and fastest growing markets for renewable energy,” RWE Chief Executive Officer Markus Krebber said.

In a separate statement, Con Edison said it intends to forego its announced plan to issue up to $850 million of common equity in 2022 and withdraw its equity guidance for 2023 and 2024.

“The transaction we announced 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 Timothy P. Cawley, Chairman and Chief Executive Officer of Con Edison. “RWE, in turn, is well positioned to accelerate the growth of renewable energy across the United States.”

The transaction is expected to close in the first half of 2023.

Barclays acted as financial advisors for Con Edison, while Latham and Watkins were the legal advisors.

Earlier this week, Brookfield Renewable – an owner, operator, and developer of renewable power – agreed to acquire Scout Clean Energy, a renewable energy developer, for $1 billion with the potential to invest an additional $350 million to support the business development activities.

According to Mercom’s 1H and Q2 2022 Solar Funding and M&A Report, in 1H 2022, there were 53 solar M&A transactions compared to 54 transactions in 1H 2021.