BANGALORE Reuters Electric utility Exelon Corp said it agreed to buy John Deere Renewables, the wind energy business of Deere & Co, for about $860 million to generate more power from renewable sources of energy.
Exelon, the largest U.S. nuclear power operator, said the deal will add 735 operating megawatts MW of clean energy to its generation portfolio, plus an additional 230 MW in advanced stages of development.
"We expect to see increasing demand for clean, efficient wind power at a national level and in the 29 states that already have a renewable energy standard," Exelon Chief Executive John Rowe said in a statement.
The deal includes a provision for up to an additional $40 million payment upon commencement of construction on the advanced development projects, Exelon said.
Separately, farm equipment maker Deere said the deal would result in a fourth-quarter after-tax charge of about $25 million.
Barclays Capital acted as financial advisor to Exelon.
Reporting by Adveith Nair in Bangalore; Editing by Gopakumar Warrier
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