Germany plans to buy RWE and E.ON's stakes in nuclear firm Urenco, sources say (updated)

E.ON SE

Yesterday 16:21

Changes sourcing throughout, adds details in paragraphs 2 and 3
Germany is trying to gain influence in nuclear deterrence
Budget document earmarks up to €4 billion
Agreement not expected to be finalised until mid-2027, person close to matter says
By Markus Wacket
BERLIN, Nov 13 (Reuters) - The German government plans to acquire a stake in London-based nuclear company Urenco from utilities RWE RWEG.DE and E.ON EONGn.DE to gain influence in European nuclear deterrence, three people close to the matter told Reuters on Friday.
The deal, potentially worth billions of euros, has already been discussed with Britain and the Netherlands, which each own one third in the unlisted company, said one of the people.
A draft is expected to be presented shortly, but the agreement is not expected to be finalised until mid-2027, the person said.
E.ON and RWE, which together own another third of the company, Urenco and the German energy ministry declined to comment.
Urenco, one of the world’s largest uranium enrichment companies, operates an enrichment plant in western Germany even though the country took its last nuclear power plant off the grid in 2023.
German newspaper Die Welt, which first reported on the plans, said both utilities aim to divest their respective stakes following Germany’s nuclear phase-out and because Urenco is becoming increasingly active in the military nuclear sector.
     
FEDERAL BUDGET EARMARKED UP TO €4 BILLION
The group, which also runs sites in Britain, the Netherlands and the United States, is expected to produce highly enriched uranium for British submarines, newspaper Sueddeutsche Zeitung reported, citing people within Germany’s coalition.
It was not immediately clear how much Germany could pay for the stake, but one of the people said an expenditure worth up to €4 billion ($4.4 billion) that appeared in a federal budget document prepared for lawmakers on Thursday was for the potential deal.
The document said only that the funds were for the acquisition and holding of stakes in energy companies. It gave no further details. The energy ministry declined to elaborate.
Germany, unlike Britain or France, is banned from developing a nuclear weapon under an agreement that opened the way for the country’s reunification in 1990 as well as under a landmark nuclear non-proliferation treaty that Germany signed in 1969.
European nations have long relied heavily on the United States, including its large nuclear arsenal, for their defence but have been increasing military spending, partly in response to criticism from the Trump administration that they had not invested enough.

(Reporting by Markus Wacket, additional reporting by Tom Kaeckenhoff and Holger Hansen; writing by Thomas Seythal; editing by Emelia Sithole-Matarise and Barbara Lewis)
((berlin.newsroom@thomsonreuters.com))