German renewable energy producer Encavis AG has confirmed its participation in negotiations with the American investment company Kohlberg Kravis Roberts (KKR & Co.) regarding a potential acquisition of Encavis' share capital. This is reported in the Encavis press release.

The value of the deal may exceed 2 billion euros ($2.2 billion).

Amid negotiations between the parties to the proposed deal, Encavis' market value rose to 2.2 billion euros after falling to 1.9 billion euros since January 2021, which was triggered by a reduction in total renewable energy reserves and investments due to high interest rates.

KKR plans to close the deal next week. However, Encavis does not guarantee the conclusion of a final agreement before receiving an official offer.

Renewable energy sources in Germany accounted for more than half of electricity production in 2023 as a result of a reduction in natural gas supplies from Russia. By 2030, Germany plans to meet 80% of its electricity needs from renewable sources, compared with 52% in 2023.

KKR is actively engaged in the acquisition of assets in the renewable energy sector against the background of growing demand for environmentally friendly electricity. In December 2023, the company entered into agreements to acquire the Portuguese company Greenvolt-Energias Renovaveis SA for 1.2 billion euros and the British Smart Metering Systems for 1.3 billion pounds ($1.66 billion), which intends to use smart devices to connect to the power grid. Previously, KKR invested in X-Elio, a Spanish solar energy company.

KKR & Co.  is an American asset management investment company headquartered in New York (USA). Since its inception in 1976, KKR has invested more than $675 billion in the capital of companies in various industrial sectors.

Encavis is a German independent power generation company. Encavis operates 80 wind and more than 200 solar power plants in twelve European countries, providing more than 2.2 million households with renewable energy. In addition, the company provides consulting services on the construction of photovoltaic installations and battery storage systems. The headquarters is located in Hamburg (Germany).