The head of RWE, Peter Terium, is set to leave his post as chief executive, in order to head up the company’s new spin-off entity, focusing on renewables, networks and retail.
The company has refused to comment on a report by the Rheinische Post, which cited an unnamed source who asserted that Terium will switch jobs to become the head of RWE’s renewables, networks and retail division.
The newspaper also stated that Terium’s current deputy and Chief Operating Officer Rolf Martin Schmitz will then assume the role of CEO.
Company sources have indicated that RWE is to report an impairment charge of more than 1 billion euros ($1.1 billion), mainly due to write-downs at the utility’s large power plants, in its forthcoming full-year results on Monday.
RWE is splitting off its renewable energy operations to cope with Germany’s energy transition, which has hurt the profitability of the utility’s fossil-fuel business.
Last week, the head of RWE’s German operations, Arndt Neuhaus, was forced to leave the company, and according to Handelsblatt newspaper was ‘ousted’ by Terium.
“Mr. Neuhaus had hoped he could lead RWE’s renewable energy spin-off, but Mr. Terium opposed that ambition, forcing him to leave,” the paper reported, adding that the chief executive had planned to lead the two businesses himself.
Now it appears that plan has been scuppered, opposed by two banks advising the breakup, as well as the utility’s designated new supervisory board chairman, Werner Brandt, unnamed sources told the German daily.
Mr. Terium hopes that the separation of its renewable energy operations, which is expected to list on the Frankfurt stock exchange late this year, will revive RWE. The utility will remain the majority shareholder of the newly-created company.
In other news associated with the company, German union Verdi has requested the consideration of the sale of RWE’s British unit nPower, according to Rheinische Post.
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