Analysts question Franco-German energy alliance

By Annemarie Botzki 24 May 2017
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Innogy’s Eschweiler wind farm. The company manages renewables services that were split off from RWE. (Innogy) Innogy’s Eschweiler wind farm. The company manages renewables services that were split off from RWE. (Innogy)

Analysts are struggling to grasp the economic rationale behind a potential tie-up between France’s Engie and RWE’s renewables-focused subsidiary Innogy.

Reuters reported the potential deal last week, which could see the German company  swapping part or all of Innogy for a minority stake in the French energy giant. HSBC analyst Adam Dickens said in a note that he saw little economic logic in RWE becoming a minority player in Engie, but said a deal made for political reasons could not be ruled out. 

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