Analysts question Franco-German energy alliance

A possible alliance between French and German energy companies has left analysts scratching their heads A possible alliance between French and German energy companies has left analysts scratching their heads.
By Annemarie Botzki 24 May 2017 0 26046
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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