German renewable energy developer Juwi AG has cleared the way for a partnership with fellow German energy group MVV Energie AG.
The company announced in October plans to hook up with MVV, which will take a 50.1% stake in the group, after suffering financial difficulties due to the market downturn.
Juwi said on Tuesday that it had now met the necessary conditions for the partnership, including new loan agreements with more than 40 financial institutions amounting to some 300 million over a four-year term. In addition, Germanys Federal Cartel Office approved the planned investment last month.
Juwi can now draw on extensive credit lines through 2018. All of the companys previous financing partners will continue to accompany the group in expanding its solar and wind power projects in Germany and abroad.
As part of its new partnership, MVV will contribute 99.4 million in equity to Juwi and take a 50.1% stake in the Rheinland-Pfalz-based company. Juwi founders Fred Jung and Matthias Willenbacher will hold a combined 49.9% in the group.
Jung and Willenbacher will remain Juwis CEOs, while MVV will appoint the companys chief financial officer once the transaction is completed. Stephan Hansen, who oversees Juwis international activities, will also remain on the companys management board.
"This constellation is unique in the German market, Jung and Willenbacher said in a statement. It will give us fresh impetus in Germany and also bolster our international activities in select markets."
MVV Energie CEO Georg Müller added that the companies now aimed "to assume a pioneering role" in the energy transition. "We are thus linking renewable and conventional energies along the entire value chain. By offering an integrally connected, one-stop supply, we are laying a key foundation for the future energy system."
Established in 1996, Juwi has around 1,000 employees.