Iberdrola interested in acquiring RWE’s renewable energy unit Innogy

Spain-based power provider Iberdrola could be interested in acquiring German renewable energy company Innogy, a subsidiary of Germany-based power utility RWE, according to Spanish financial newspaper Expansión.

The article, which cites unidentified sources within the financial sector, says that Iberdrola has not confirmed its interest in the operation, as it “usually does not comment market rumors.”

RWE said in March it was considering every option for its renewable energy unit, and that it is in talks with market players. At that time, Bloomberg revealed that French energy giant Engie was planning to acquire Innogy. Furthermore, Reuters revealed that an unidentified source from the French government had confirmed that talks were being held, but the banks had not been given mandate to proceed with the operation.

RWE, however, is obliged by a 2015 board resolution to maintain a 51% stake in the unit. This means the company could eventually sell only the remainder of the 77% stake it currently holds.

In May, Reuters estimated the value of Innogy at at €18.6 billion. Innogy completed the acquisition of German PV power and storage specialist Belectric in January 2017. Through this acquisition, Innogy added much-needed large-scale solar PV and storage capabilities to its portfolio. Belectric’s global portfolio consists of 280 utility-scale solar plants and rooftop arrays, amounting to more than 1.5 GW of installed solar capacity.