German energy company RWE AG is reportedly close to finalizing a deal to significantly increase its stake in Amprion, a key transmission grid operator. The company plans to acquire stakes from Swiss Life and a German pension fund, a transaction that could value Amprion at roughly €10 billion ($11.5 billion).
The acquisition involves RWE buying around a 17% stake from Swiss Life, which currently holds it in M31, a holding company that owns 74.9% of Amprion. Additionally, RWE is expected to acquire a 24% stake in M31 from AEBG, an investment group representing five major German medical pension funds. These moves aim to boost RWE's ownership in Amprion.
The expanded stake would increase RWE's total ownership to 51% in Amprion, requiring full consolidation of Amprion's financial statements into RWE's. This strategic shift could transform RWE into a company structurally similar to Iberdrola, according to analysis by Goldman Sachs. The deal is crucial for Germany's grid, which requires billions in investment to support the expanding renewable energy sector, particularly addressing bottlenecks between northern wind farms and southern industrial demand.
Currently, RWE holds a 25.1% stake in Amprion through a joint venture with US private equity firm Apollo Global Management Inc. This current move highlights RWE's renewed focus on regulated assets after previously divesting some offshore wind holdings. Amprion itself has ambitious investment plans, aiming to deploy around €42 billion by 2030 to modernize and expand its grid infrastructure.
