Possible buyers walk away from a deal to buy RWE’s stake in Suewag

German power and gas utility RWE (AG ETR:RWE) said talks over the sale of its 77.6% in utility unit Suewag to consortium of regional utilities had failed to lead to an agreement, due to differences on pricing, but it remained open to negotiate a deal with interested parties.

Regional utilities EVM and Stadtwerke Frankfurt am Main Holding GmbH, part of the bidding consortium, said in a statement that the group is not planning to continue negotiations with RWE.

RWE’s stake in the utility unit Suewag has been valued at between EUR700m (USD873m) and EUR800m by analysts cited by Reuters.
The German group is still aiming to dispose of up to EUR7bn worth of asset by the end of next year, it said.

It has so far disposed of 19.3% in regional utility VSE in a EUR83m deal and came near to selling its 24.95% in water utility Berlinwasser for EUR618m, Reuters said.

RWE is still planning to shed Suewag, its oil and gas exploration business DEA, Czech gas transmission firm NET4GAS and its stake in regional utility Kevag.

Last week, the company said it would cut 2,400 more jobs, apart from the initially announced 8,000 job cuts.

The utility, along with other German sector players, is striving to cope with the country’s decision to phase out nuclear power by selling assets and reducing costs.