Aug. 28 (Bloomberg) -- Westinghouse Solar Inc., which agreed in May to be bought by Australia’s CBD Energy Ltd., formed a joint venture with its buyer to design and build solar projects in Italy.
Westinghouse is investing $1.5 million and will receive 25 percent of the profits from the CBD’s commercial projects in Italy, the Campbell, California-based company said today in a statement. It has the option to boost its stake to 50 percent by investing as much as $1.5 million more.
The two companies are collaborating before the Westinghouse purchases closes, which is expected this quarter. Once the sale is complete, they plan to pursue additional solar projects in Europe and the U.S., according to the statement.
CBD, based in Double Bay, New South Wales, received a $25 million credit facility in May to fund projects in Italy and has already sold one 5 megawatt project there for 12.5 million euros ($15.7 million). It expects to sell another 25 megawatts of solar capacity starting in October to the same buyer, with Westinghouse earning an estimated $5 million if it increases its ownership to half of the joint venture.
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