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The Elliott Management Coverage Fund has taken a participation of almost 5 percent in RWE, asking the German energy group to “increase and significantly accelerate” its actions repurchase program.
RWE, one of the largest energy producers in Europe with an important renewable energy portfolio, announced last week that it would reduce 10 billion euros in capital expenses in green technologies in the next five years, since the opposition of the Trump administration to the wind in high sea adds risk to the investments of renewable energies.
Elliott, who has been building his participation in RWE since at least last year, said Monday that he had created an economic interest of about 5 percent in the group.
It is the last significant position of the United States activist investor in a European Energy Company after its high profile statification in the PA that is quoted in London, which has been pressing to get away from green energy.
Elliott welcomed RWE last week that he would reduce his disbursement of renewable energies, qualifying the measure in “an important first step towards the most disciplined capital allocation.” But he criticized RWE’s “lack of clarity” for his commitment to boost the returns of the shareholders and said that the company remained undervalued.
“Given the reduction of the announced capex and the persistent undervaluation of RWE, we believe that there is a convincing opportunity to significantly increase and accelerate the ongoing shares repurchase program,” Elliott said in a statement.
RWE had made significant bets in renewable energy, but has been reducing them since the victory of Donald Trump’s presidential elections in the United States. Two years ago, the group had spent almost $ 7 billion acquiring the clean energy business of Edison, which operates solar and wind energy projects in the United States.
RWE shares have won 3 percent during the past year, and have won around 9 percent so far in 2025. The group has a market capitalization of approximately € 24 billion. The shares increased 2.5 percent in the first operations on Monday.
RWE last week reported 2024 profits of € 5.7 billion. The group also reaffirmed its long -term median profit objectives despite the lower capital spending.
In February, Elliott took a participation of almost 5 percent in the oil pajor with difficulties, where he is pressing for a renewed approach to oil and gas. Earlier this month, it took a short position of 670 million euros in the French Energy Company TotalEnergies, a movement that is coverage against their long positions in the sector, according to a person familiar with the matter.
