RWE downplays Uniper role after joint bid with KKR
German utilities company RWE has sought to play down expectations of it playing a significant role in Uniper if its joint bid with KKR for the state-owned energy company succeeds, according to a report by Bloomberg.
German utility RWE has downplayed its potential role in the Uniper energy company should its joint bid with private equity firm KKR succeed, according to Bloomberg. RWE CEO Markus Krebber indicated that any involvement by the utility would be "very, very limited and small", citing the utility's already dominant presence in Germany's energy sector.
Bloomberg reports that Krebber stated in a Bloomberg interview, given RWE's current position, a takeover of Uniper is "not possible" and not a goal the company is aiming to achieve. This comes after RWE and KKR submitted a non-binding joint bid for Uniper, surprising investors as RWE had previously ruled out pursuing such a deal.
The transaction is particularly contentious as both RWE and Uniper are two of Germany's largest energy companies, controlling significant positions in both the electricity and gas markets and infrastructure. The German government is currently contemplating options for reducing its stake in Uniper, which it acquired during a rescue of the company during the 2022 European energy crisis.
Berlin aims to preserve Uniper's gas trading and power generation businesses as an integrated group and intends to hold onto a roughly 25% stake following any sale, according to earlier reports. The RWE-KKR bid is vying against several other potential buyers for Uniper, including Norway's Equinor, a consortium of Brookfield Asset Management and Canada Pension Plan Investment Board, and Czech billionaire Daniel Kretinsky's EPH.
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