BayWa Sells 850 MW Japan Battery Portfolio as Restructuring Timetable Remains Uncertain

BayWa AG offloads 350 MW Japan battery storage projects to Energy Vault, but deal does not resolve valuation gap for its renewable subsidiary as restructuring continues.

BayWa r.e. has offloaded a battery storage portfolio in Japan to US-based Energy Vault, giving the parent group a much-needed operational win even as the restructuring of the wider BayWa AG grinds on. The deal covers 350 megawatts of advanced-stage projects expected to enter commercial service from mid-2028, plus 500 megawatts of earlier-stage development assets. Energy Vault also takes over the local development team, along with expertise in land rights, permits and grid connections.

The purchase price has not been disclosed, however, leaving investors to guess whether the transaction moves the needle on the valuation of BayWa’s 51% stake in its renewable energy subsidiary. That valuation has been a sore point since March 2026, when the group admitted in an ad-hoc announcement that proceeds from a future sale of the BayWa r.e. holding would likely fall far short of earlier assumptions. For now, the Japan deal does nothing to close that gap.

The sale comes as BayWa AG navigates a sweeping restructuring. The group reported a sharp drop in first-quarter revenue to €2.3 billion, versus €3.6 billion a year earlier — a slide of nearly 34%. Adjusted for the divestiture of RWA, the decline stands at 18.2%. Management pointed to unfavourable weather, weak construction activity, customer uncertainty, and the Iran conflict that has pushed up costs for diesel, fertiliser and petrochemicals. Still, adjusted EBITDA came in ahead of the restructuring plan’s target and above the prior-year level, and the company said liquidity has reached a solid position.

The trust deficit is a growing headwind. BayWa cited “uncertainty” around its BayWa r.e. subsidiary in its quarterly report, and a survey by the Bavarian Agricultural Weekly in January found that nearly half of respondents have lost confidence in the group for good. That erosion is bleeding into sales.

Debt reduction is making progress, albeit slowly. The sale of Dutch subsidiary Cefetra Group cut bank borrowings by more than €600 million. Alongside proceeds from the divestitures of RWA, WHG and EDL, total relief amounts to roughly €1.3 billion — less than a third of the €4 billion target set for 2028. The next big piece on the block is the New Zealand fruit business T&G Global, in which BayWa holds 74%. Goldman Sachs has been searching for a buyer since March. T&G generated 2024 revenue of $1.3 billion and returned to profit with net income of $16 million. The expected sale price is around €300 million, but Hong Kong-based minority shareholder Joy Wing Mau Group is slowing the process.

BayWa has secured a standstill agreement with its lending banks until autumn 2026, buying time to revise the restructuring concept before the full-year 2025 accounts can be released. The annual report will not appear until October 30, 2026 at the earliest. Until then, the true shape of the group’s balance sheet remains clouded.

The share price reflects the uncertainty. On Thursday, BayWa stock traded at €12.00, down 2.04% on the day. That leaves it 13.4% below its 50-day moving average of €13.86 and roughly 41% lower over the past twelve months. The 52-week high of €21.50 is now 44% out of reach. For BayWa, the next catalysts are the revised restructuring plan, updated financing arrangements and long-awaited annual accounts — not mere megawatt numbers from a Japanese battery deal.