Faced with shrinking margins on conventional electricity production and a €25.6-billion debt pile, RWE has engaged in talks with an Arab investor about joint investment options, including forming a joint venture.
German business weekly WirtschaftsWoche reported Thursday that RWE chief executive Peter Terium has been in talks for months with Abu Dhabi state-controlled investment firm Aabar Investments, citing unidentified people familiar with RWE. The negotiations have focused on Aabar either taking a direct stake in RWE or in projects run by the company, the magazine reported.
A spokeswoman for RWE confirmed that talks were underway with an Arab investor, but would not name the partner. She said a capital injection was off the table.
“In the ongoing talks, we are focusing on sounding out the opportunities for the joint realization of projects in the Middle Eastern-North African region,” RWE spokeswoman Sabine Jeschke told Handelsblatt Global Edition.
The talks with the Arab investor could also “lead to a long-term partnership, for instance in the form of a joint-venture,” Ms. Jeschke of RWE said.
The company had in March confirmed it was in talks with an Arab investor about options to cooperate. At the time, the company told Reuters that no outcome could be ruled out.