Elliott Wants More Buybacks From Germany’s RWE After Buying 5% Stake

Elliott Wants More Buybacks From Germany’s RWE After Buying 5% Stake | OilPrice.com

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Breaking News:

ByTsvetana Paraskova– Mar 24, 2025, 8:30 AM CDT

Elliott is demanding higher shareholder returns from another major European energy company—the activist investor wants more share repurchases from RWE after disclosing on Monday that it now holds nearly 5% of Germany’s top utility.

Elliott has gained prominence in recent months by campaigning for increased returns for investors at several energy companies, including UK’s BP and U.S. refiner Phillips 66.

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Elliott Management is pushing for changes at BP after amassing close to 5% in the UK-based oil and gas supermajor. Elliott Management has signaled it would be pushing for changes in strategy, or even for board reshuffles, to address the undervalued shares of the company.

In a major reset back to oil and gas, BP last month said it would increase its investment in upstream oil and gas to $10 billion per year while slashing spending on clean energy by more than $5 billion a year.

BP will also look to reduce costs and net debt, boosting the target to $4 billion–$5 billion of structural cost reductions by the end of 2027 and targeting $20 billion of new divestments to be announced by the end of 2027.

However, Elliott and other shareholders are reportedly seeking even deeper changes and have held meetings to build consensus around additional demands.

Elliott is now gunning for Germany’s RWE, which just last week said it would slash its investment program for low-carbon energy projects by $10.8 billion (10 billion euros) amid mounting uncertainties about renewable energy policies and profitability.

In a statement on Monday, Elliott welcomed the reduction in RWE’s 2025-2030 investment program, which it said was “an important first step towards more disciplined capital allocation.”

“However, we share the market’s disappointment with the lack of clarity regarding the Company’s commitment to enhance shareholder returns,” Elliott said.

“Given the announced capex reduction and RWE’s persistent undervaluation, we believe there is a compelling opportunity to significantly increase and accelerate the ongoing share buyback programme.”

By Tsvetana Paraskova for Oilprice.com

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