RWE says not interested in companies as big as Iberdrola

25 February 2008

MADRID – German power company RWE said Friday it is not interested in acquiring companies of the size of Spanish electricity supplier Iberdrola.

Iberdrola has been the focus of merger and acquisition speculation of late after Électricité de France (EDF) expressed interest in the Spanish firm.

After acquiring Scottish Power last year for EUR 17.1 billion, Iberdrola was the fourth largest electricity company in the world in a cash and share deal, with market capitalisation of close to EUR 51.3 billion.

At a presentation of RWE’s results for last year, Chief Executive Officer Jürgen Grossman said the German power company plans to invest between EUR 15 and 20 billion on boosting internal growth and acquisitions.

However, he said RWE was aiming to consolidate its position in the United Kingdom and Germany, and was looking to expand in southern and southeast Europe, but excluding Spain. RWE is also interested in Russia.

Iberdrola Chairman Ignacio Sánchez Galán said yesterday he would do everything possible to thwart any hostile approach by EDF.

Earlier this week, Iberdrola reported its net profit for last year climbed 41.8 percent from a year earlier to EUR 2.353 billion. Iberdrola’s share price closed Friday down 1.90 percent.