German utility RWE has agreed to acquire additional indirect stakes in transmission system operator Amprion for $4.1 billion (€3.6 billion), raising its total holding in the company to 55% and expanding into regulated grid infrastructure.
RWE has agreed with five shareholders of M31, which holds a 74.9% stake in Amprion, to acquire indirect shares in the transmission grid operator. The transactions are expected to close in the third quarter of 2026, subject to regulatory approvals and other customary conditions.
The acquisition marks a new investment pillar for RWE alongside its renewables and flexible generation businesses.
"We are expanding RWE's portfolio into grid infrastructure. By increasing our stake in Amprion and providing additional funding for the expansion of Germany's transmission grid, we gain further attractive growth opportunities," said Markus Krebber, Chief Executive Officerof RWE.
Amprion operates an 11,000-kilometre extra-high-voltage transmission grid serving around 29 million people across Germany.
RWE said it would invest $7.4 billion (€6.5 billion) through 2031 to support the expansion of Germany's transmission grid, including about $4.5 billion (€4 billion) linked to the increased stake in Amprion and $2.8 billion (€2.5 billion) that had already been earmarked for its existing holding.
To finance the acquisition, RWE launched and subsequently completed an equity capital raise of around $4.5 billion (€4 billion).
The offering was significantly oversubscribed, according to the company.
"We are pleased by the strong investor demand for this equity capital raise, which underscores market confidence in our strategy," Krebber added.
Cornerstone investors Qatar Investment Authority and Norges Bank Investment Management acquired shares with an aggregate value of about $1.13 billion (€1 billion).
RWE said its plans to invest $39.9 billion (€35 billion) by 2031 to expand its global renewables, battery storage and flexible generation portfolio remain unchanged, as does its target to grow generation capacity to 65 GW and increase dividends by 10% annually.