RWE CEO: don't believe in renewable megadeals in next years

FILE PHOTO: Markus Krebber, CFO of RWE and designated successor of outgoing CEO Rolf Martin Schmitz poses for a picture during a photo session at the headquarters of the German utility in Essen, Germany, March 11, 2021. Picture taken March 11, 2021. REUTERS/Wolfgang Rattay/File Photo

FRANKFURT (Reuters) – RWE, Europe’s third-largest renewables player, does not expect large deals in the sector in the next few years, its chief executive told journalists on Thursday after presenting first-half results.

“I don’t believe it because the market is growing so rapidly. Basically, every player is focused on getting a slice of the pie,” Markus Krebber said. “And big transactions usually occur in consolidating industries … Maybe we will see it but certainly not in the next years.”

RWE, whose market value currently stands at 21.2 billion euros ($25 billion) has been named as a potential takeover target in the past at a time when oil majors have set ambitious targets to grow their renewables pipelines.

Krebber also said that there were no plans to change RWE’s structure — which spans offshore, onshore, solar as well as coal and nuclear activities — further, adding all technologies were needed to address the energy transition.

RWE three years ago became one of Europe’s largest renewables players by breaking up its Innogy unit with E.ON, in which it now holds a 15% stake.

“There are no plans to adjust the structure again,” Krebber said. “We want to bring to a close the transformation as one company.”

($1 = 0.8516 euros)

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