EnBW To Review Renewables, Gas Strategy Post EDF Exit

EnBW Energie Baden-Wuerttemberg AG (EBK.XE) will review its strategy on renewable energies and natural gas following the departure of Electricite de France SA (EDF.FR) as the major shareholder at Germany 's No. 3 power utility, its chief executive said Tuesday.

The results of the review will likely be announced at EnBW's annual earnings press conference in February at the latest, Hans-Peter Villis told reporters on the sidelines of an employee meeting at EnBW's head offices in Karlsruhe .

His comments come after French state-controlled power company EDF Monday said it had agreed to sell its entire 45.01% stake in EnBW to the southern German state of Baden-Wuerttemberg in a transaction valued at around EUR4.67 billion.

EnBW and EDF have been cooperating on a wide range of projects, including the construction of a gas storage facility in Etzel, northern Germany , offshore wind and energy trade.

Villis said EnBW is committed to continuing its partnership with EDF, albeit under different circumstances.

Asked whether EDF's exit would allow EnBW to grow in markets it hasn't previously targeted, Villis said: "We've always said that we're focusing on six countries-- Germany , Austria , Switzerland , Poland , the Czech Republic and Turkey --and this won't change."

Villis also said EDF's exit could have repercussions for EnBW's efforts to take a stake in gas importer VNG Verbundnetz Gas AG.

"The VNG issue will now take place under different rules," Villis said, without elaborating.

The company has an option for 48% of shares in VNG, which is currently owned by Oldenburg-based utility EWE AG. Last year, EnBW tried to acquire further shares in VNG from eastern German municipal utilities, which combined with the EWE stake would have given it a majority in the eastern German gas supplier.

EnBW's plans had, however, been fiercely opposed by existing VNG shareholders--which include a group of eastern German municipalities, Russia's OAO Gazprom (GAZP.RS) and BASF SE's (BAS.XE) Wintershall AG.

EnBW's option on VNG shares expires at the end of 2011, Villis had said previously.