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RWE chief rules out selling off power plants

The chief executive of RWE, Rolf Martin Schmitz, says the company is not interested in selling off its power plants, anRolf Martin Schmitzd on the contrary, would consider acquiring assets from competitors who are unable to continue in what is increasingly challenging market.

Reuters reports that RWE is eyeing deals in its core markets – Germany, Britain and the Netherlands – to bolster its business. And could make “selective and opportunistic” purchases if competitors pulled out of the challenging sector and left behind assets at good prices.

Schmitz fuelled M&A speculation two weeks ago when he said RWE was considering several strategic options, including tie-ups with rivals and the sale of a stake in energy group Innogy , in which RWE owns 76.8 percent.

Analysts and investor have highlighted the possibility of RWE taking over Uniper , the former power plant and energy trading business spun off from larger peer E.ON , which still owns 46.65 percent.

The company is content to retain its 41.9 GW of generation capacity, more than half of which are from lignite and gas.