The two companies have signed a "put option" agreement for the pipeline that gives Nordex the right, but not the obligation, to sell the portfolio to RWE for about €402.5 million within a specified time frame.
Nordex explained its decision was aimed at accelerating value creation from its entire European development pipeline through a single transaction.
The portfolio consists of 1.8GW of French wind farms and 100MW of French solar PV capacity, as well as wind farms in Spain, Sweden and Poland. Projects are in various stages of development, but none of them is operational.
The development pipeline also comes with a team of more than 70 employees who will join RWE Renewables when the acquisition is completed.
Nordex added that it plans to continue developing wind power capacity, and in the near future will focus on non-European markets. However, a spokeswoman added that the company would not rule out a return to project development in Europe at a later date.
Meanwhile, RWE Renewables stated that the acquisition would add to its existing 22GW development pipeline, while CEO Anja-Isabel Dotzenrath added that it fuels the company’s ambitions to grow in France.
The two companies expect the transaction to close in Q4 2020. Before it can close, there will be a consultation process with the Nordex staff council in France, and French authorities must also approve investment from a foreign company.
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