RWE, one of Europe’s largest power producers with a significant renewables portfolio, last week announced it would slash €10bn in capital expenditure on green technologies over the next five years as the Trump administration’s opposition to offshore wind adds risk to renewables investments.
Elliott, which has been building its stake in RWE since at least last year, said on Monday that it had built an economic interest of close to 5 per cent in the group.
It is the US activist investor’s latest significant position in a European energy company after its high-profile stakebuilding at London-listed BP, which it has been pushing to pivot away from green energy.
Elliott welcomed last week’s announcement by RWE that it would reduce its outlay on renewables, calling the move “an important first step towards more disciplined capital allocation”. But it criticised RWE’s “lack of clarity” on its commitment to boosting shareholder returns and said the company remained undervalued.
“Given the announced capex reduction and RWE’s persistent undervaluation, we believe there is a compelling opportunity to significantly increase and accelerate the ongoing share buyback programme,” Elliott said in a statement.
RWE had made significant bets in renewable energy but has been scaling them back since Donald Trump’s US presidential election victory. Two years ago, the group had spent almost $7bn acquiring Con Edison Clean Energy Business, which operates solar and wind projects in the US.
Shares in RWE have gained 3 per cent over the past year, and have gained about 9 per cent so far in 2025. The group has a market capitalisation of about €24bn. The shares rose 2.5 per cent in early trading on Monday.
RWE last week reported 2024 earnings of €5.7bn. The group also reaffirmed its mid- to long-term earnings targets despite lower capital expenditure.
In February, Elliott took a stake of almost 5 per cent in struggling oil major BP, where it is pushing for a renewed focus on oil and gas. Earlier this month it took a €670mn short position in French energy company TotalEnergies, a move that is a hedge against its long positions in the sector, according to a person familiar with the matter.
(από Financial Times, March 24, 2025)