Dutch gas transporter Gasunie NV has pulled out of a consortium bidding for RWE AG's (RWE.XE) natural gas grid, a Gasunie executive said Tuesday.

Gasunie is no longer a partner in the consortium bidding for RWE's distribution network, Thyssengas, Jens Schumann, head of Gasunie Transport Services in Germany said, speaking at the Dow Jones Gas Market Conference.

He cited the regulatory environment in Germany , insufficient security and investment incentives for the decision. The company has already notified the remaining 30 municipal utilities which comprise the consortium as well as the other interested bidder, Bayerngas GmbH, he added.

Schumann said the return on equity on networks in Germany lags other European Union member countries.

He said at most a return on equity of 3% can be expected, while across the rest of Europe returns in the double-digits can be reached, he said.

"We are simply not viable in the capital market with a bid for ThyssenGas," he said.

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