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.

RWE chief executive Markus Krebber said any involvement by the utility would be “very, very limited and small”, pointing to RWE’s already substantial presence in Germany’s energy market.

The report cites Keebler as stating in an interview with Bloomberg that given RWE’s current market position, a takeover of Uniper is “not possible”, and not what the company is looking to achieve.

The comments come after RWE and private equity firm KKR submitted a non-binding joint offer for Uniper, surprising investors after RWE had previously ruled out pursuing a deal.

The potential transaction is particularly sensitive because RWE and Uniper are two of Germany’s largest energy businesses, with significant positions across the country’s electricity and gas markets and infrastructure.

The German government is considering options for reducing its stake in Uniper, which it acquired as part of the rescue of the gas importer and power generator during the European energy crisis in 2022.

Berlin is seeking to preserve Uniper’s gas trading and power generation businesses as an integrated group and intends to retain a stake of roughly 25% following any sale, according to earlier reports.

The KKR-RWE proposal is competing with several other bids for Uniper. Potential buyers include Norway’s Equinor, a consortium comprising Brookfield Asset Management and Canada Pension Plan Investment Board, and Czech billionaire Daniel Kretinsky’s EPH.