E.ON Agrees to Buy Innogy, RWE to Manage Renewables

E.ON SE has reached an agreement in principle with RWE AG to acquire RWE’s 76.8% stake in innogy SE via a far-reaching exchange of assets and participations.

Under the agreement in principle, E.ON would receive RWE’s 76.8% stake in innogy in return for granting RWE an effective participation of 16.67% in E.ON SE.

E.ON would transfer to RWE most of E.ON’s renewables business. Also, RWE would receive the entire innogy renewables business.

The renewables businesses of E.ON and RWE would be brought together under the umbrella of RWE. It is planned to implement the transaction in several steps, and it is subject to customary antitrust clearances.

Following approval of both companies’ boards, the agreement could be signed shortly thereafter, E.ON said.

After successful implementation of the transaction, it is intended to fully integrate innogy into the E.ON Group.

Through this transaction, E.ON would become a focused customer-oriented energy company concentrating on energy networks and customer solutions.