EDF sells US, Canada renewable unit to KKR for €4 billion

EDF signed an agreement to sell EDF Power Solutions in the United States and Canada to private equity firm KKR, the French state-owned utility said Friday, as it seeks to raise capital to maintain its 57 aging nuclear reactors and finance six new units.

"KKR will acquire the operations and assets" of the unit, which operates 5.6 gigawatts of renewable assets across the two countries, EDF said in a statement. EDF CEO Bernard Fontana told Reuters in November the company was exploring a sale of 50% to 100% of its U.S. renewable business.

The deal values the unit at nearly €4 billion ($4.56 billion), according to a person familiar with the matter. EDF has developed 26 gigawatts of wind, solar and battery storage projects plus electric vehicle charging sites across North America, and has 17 gigawatts under service contracts in the region, which includes a small amount in Canada and Mexico.

The sale marks a major restructuring for EDF as the utility grapples with the cost of maintaining France's nuclear fleet — the world's largest after the U.S. — while funding the construction of six new reactors under the country's energy transition plan. For KKR, the acquisition expands its North American energy infrastructure portfolio, adding a significant renewable platform at a time when private equity firms are increasing bets on power generation assets.

Regulatory Path and Timeline

The transaction requires regulatory approvals in both the U.S. and Canada, with an expected closing timeline not yet disclosed. EDF did not specify how it will deploy the proceeds, though the company is expected to direct funds toward its nuclear investment program, which includes extending the operating life of existing reactors.

European Utilities Under Pressure

The sale comes as European utilities face pressure to reduce debt and focus on core operations. EDF, fully owned by the French state, has been selling non-core assets to shore up its balance sheet after years of underinvestment in its nuclear fleet and the financial strain of regulated power prices during Europe's energy crisis. The November announcement of a potential sale signaled the scale of the company's capital needs, with Fontana estimating the U.S. unit could fetch nearly €4 billion.

KKR's Energy Infrastructure Push

For KKR, the deal follows a broader push into energy infrastructure. The New York-based private equity firm has been expanding its power and renewables portfolio, betting on rising electricity demand from data centers, electrification and artificial intelligence. The acquisition of EDF's North American platform gives KKR immediate scale in a market where utilities and independent power producers are competing to meet growing demand.

This article is for informational purposes only and does not constitute investment advice.