  We extend the periodic Anderson model by switching on a Hubbard $U_d$ for the
conduction electrons. The nearly integral valent (Kondo) limit of the
Anderson--Hubbard model is studied with the Gutzwiller variational method. The
new formula for the Kondo energy contains the $U_d$-dependent chemical
potential of the Hubbard subsystem in the exponent, and the correlation-induced
band narrowing in the prefactor. Both effects tend to suppress the Kondo scale,
which can be understood to result from the blocking of hybridization (this
behaviour is the opposite of that found for Kondo--Hubbard models). At
half-filling, we find a Brinkman--Rice-type transition which leads from a
small-gap Kondo insulator to a Mott insulator.
