Renowned companies RWE and Apollo Global Management are teaming up for a EUR 3.2 billion investment in the German Transmission System Operator.
In a significant move, German energy giant RWE and American investment firm Apollo Global Management have agreed to form a joint venture (JV) to finance RWE's stake in Amprion, one of Germany's four transmission system operators (TSOs). The transaction, worth €3.2 billion, is expected to close in the fourth quarter of 2025, subject to customary closing conditions and regulatory approvals.
The JV will hold RWE's 25.1% stake in Amprion, with RWE retaining operational control and continuing to manage the Amprion stake. This move is part of RWE's strategy to optimise its capital structure and focus on its core business.
Amprion, which operates the transmission grid in seven German federal states, serving approximately 29 million people, is currently involved in several offshore grid projects. It has received planning approval for the BalWin1 and BalWin2 offshore grid connection projects, and construction is underway on Amprion's BorWin4 and DolWin4 grid connections. The JV will focus on strategically deploying the equity to align with Amprion's grid expansion roadmap, which includes plans to invest around €36.4 billion in expanding its grid by 2029.
Apollo will act as a long-term partner to RWE, providing financial resources to support Amprion's growth and expansion. RWE will receive the funds from Apollo upfront and then reinvest the proceeds into Amprion through the JV. Dividends from Amprion will be shared between RWE and Apollo.
Amprion has two shareholders: M31 Beteiligungsgesellschaft mbH & Co. Energie KG (74.9%) and RWE AG (25.1%). The deal involves the equity stake in the JV, which will be consolidated in RWE's financial statements.
This joint venture marks a significant step for both RWE and Apollo, strengthening RWE's financial position and Apollo's presence in the European energy sector. It also underscores the importance of investing in grid infrastructure to support the transition to renewable energy sources.
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