Germany Plans to Acquire One-Third of Urenco Under €4 Billion Budget Provision
Key Facts
The German government plans to acquire one-third of Urenco from RWE and E.ON, according to a Handelsblatt report published on November 12 that cited government sources, after WELT first reported the news. The report places Germany’s stake in the uranium enrichment company on a possible path toward state ownership. The newspaper said the two companies want to exit their stakes, reflecting their move away from the nuclear fuel business. But RWE and E.ON declined to comment when asked, and Germany’s finance and economy ministries did not state a position. The plan therefore remains based on press reports, with no official confirmation from the parties involved.
Press reports link the plan to a new provision in the draft 2027 federal budget, worth 4 billion euros, for buying stakes in companies operating in the energy sector. An Investing.com report said political sources linked the amount to RWE and E.ON’s stake in Urenco. The provision describes the spending as related to “acquiring and holding stakes in companies in the energy economy,” according to the quotation published by the website. The government has not confirmed that the amount is earmarked for buying a stake in Urenco, and the reports have not confirmed the deal price or terms. The 4 billion euros figure remains the value of the provision in the draft budget, not an announced price for the stake. The proposed link gives the news a financial and political dimension, bringing together a possible exit from a nuclear asset and a large federal spending provision.
The stake targeted by the plan is one-third of Urenco, while the company’s ownership is divided equally among the British government, the Dutch government and the German holding company Uranit UK Limited, according to its 2024 annual report. RWE and E.ON each own 50% of the German holding company. If the plan proceeds, buying the German stake would transfer ownership of that party from the two companies to the federal government. This structure matters because the stake is not owned directly by the companies individually, but through the German holding company. Available reports do not detail the acquisition mechanism, timeline or governance arrangements afterward. The parties involved have also not confirmed whether negotiations have already begun.
According to Handelsblatt, the two companies believe nuclear power is no longer compatible with their strategies after Germany abandoned its use. The report said another possible factor behind their desire to exit is Urenco’s expansion into military nuclear activity, after the company had focused on civilian nuclear energy. The newspaper attributed much of this expansion to British demand and said it could concern the German owners. The newspaper presented this as a possible motive, not a stated position from RWE or E.ON. This comes alongside the strategic shift the report attributed to the two companies, without the reports publicly specifying the relative weight of each motive. The companies declined to comment, so they have not provided a direct account of their reasons for exiting.
Urenco says it provides uranium enrichment services and nuclear fuel cycle products to more than 50 customers in more than 20 countries. Its audited 2025 financial results showed revenue rising to 2,096.2 million euros from 1,877.4 million in 2024. Earnings before interest, taxes, depreciation and amortisation also rose to 804.2 million euros, compared with 728.1 million, while net income increased to 248.5 million from 180.3 million. The performance gives an indication of the scale of the company’s commercial activity as the government considers, according to reports, acquiring the German shareholders’ stake. The order book reached a record 21.3 billion euros at the end of 2025, up about 14% from the previous year. The contracts recorded in the order book extend into the 2040s, the company said.
Urenco plans to continue expanding its production capacity, its chief executive said in its 2025 results, targeting an additional 2.5 million separative work units of capacity. The plans include a commercial low-enriched uranium production facility at Capenhurst, with construction due to begin in 2028. The company estimates the facility could have potential capacity of 27 tonnes a year. These projects reflect the company’s long-term investment plans, alongside an order book extending into the 2040s. Reports on the acquisition provide no deal timeline or final decision. The 4 billion euro budget provision remains part of the draft 2027 budget, and the government has not confirmed that it will be allocated to buying a stake in Urenco.