Israel's OPC Energy has signed a letter of intent to buy US company Competitive Power Ventures (CPV) with an estimated investment of between $700 million (£545m) to $800 million (£623m).

It notes its holding in CPV may be around 70%, with plans to bring in a number of institutional investors from the Israeli capital market as partners in the deal.

OPC Energy is currently negotiating with Migdal, Clal and Poalim Capital Markets.

CPV has a total installed capacity of around 14,800MW, out of which 4,850MW are wind farms. It has also accumulated new projects with around 6,200MW of capacity, out of which 2,245MW are renewable energy projects.

It also has four natural gas projects at various stages of development, with a combined capacity of 3,955MW.

Giora Almogi, CEO of OPC Energy said: "We have long recognised the potential inherent in the US electricity market, with an emphasis on expanding operations into the field of renewable energies. We see the US market as one of OPC's strategic target markets.

"There is growing momentum for increased development of renewable energy and a focus on a lower carbon approach to electricity supply. In parallel, the trends continue with a modernisation of the grid with coal and uneconomic nuclear assets being retired and the construction of efficient, highly flexible natural gas power plants for economic and environmental reasons.

"The acquisition, when completed, CPV will become OPC's investment and expansion platform in the United States and will help the company grow and expand its operations while diversifying the company's revenue sources into a number of areas, regulations and states."

The deal is subject to a number of approvals and to the completion of the negotiation process between the two companies.

https://www.energylivenews.com/

.

(C) 2020 M2 COMMUNICATIONS, source M2 PressWIRE