Cologne-based utility RheinEnergie AG would be interested in E.ON AG's (EONGY) public utility Thuega, should E.ON decide to sell, RheinEnergie Chief Executive Martin Schmitz said Tuesday.
Schmitz added, however, that the company isn't in talks with E.ON.
Recent press reports claimed E.ON is sounding out a sale of Thuega, which bundles together the company's minority stakes in 120 municipal utilities. E.ON has declined to comment on the reports.
Germany's Manager Magazin Friday reported a possible sale of Thuega to a consortium of six public utilities, led by MVV Energie AG (MVV1.XE) and RheinEnergie.
During a joint press conference Tuesday with RheinEnergie, MVV Energie Chief Executive Rudolf Schulten didn't comment directly on Thuega, but said the two firms plan to cooperate in the area of mergers and acquisitions. He added that MVV has about EUR1 billion at its disposal for M&A, while RheinEnergie has at least the same amount.
Manager Magazin estimated Thuega's value at around EUR2.7 billion to EUR4.3 billion, depending on what strategic premium a buyer is prepared to pay. Because of the high purchasing price, the magazine added that the potential consortium of buyers may also consider teaming up with other partners.
Schulten reiterated that he expects there to be consolidation within the German public utility sector, with large energy companies selling stakes in municipal utilities. But he added that he doesn't expect the big energy companies themselves to participate in this consolidation, because of antitrust issues.