RWE Pushes Forward with Renewables Takeover

RWE has filed the acquisition of renewables businesses of E.ON and innogy with the European Commission.

 

The filing is the first step of a merger control procedure which is necessary due to the substantial asset swap between RWE and E.ON, the German utility said.

The filing occurs following a pre-investigation by the European Commission lasting several months. Such a pre-investigation is customary in merger control procedures and enables the Commission to gain an accurate picture of the effects of a transaction on the competition in the relevant markets.

Within the transaction, RWE will get the renewable energy businesses of E.ON and innogy. In addition, RWE will acquire a 16.7 % equity interest in E.ON.

RWE will file the mentioned acquisition of the 16.7 % shareholding in E.ON with the German and British cartel authorities in due course as well. The same applies to the acquisition of the US assets in the USA where the relevant US competition authorities will be notified. This will happen in the first half of the year.

The objective is to complete the transaction between RWE and E.ON announced in March 2018 in the second half of 2019.

Last week, RWE published the cornerstones of RWE’s renewables strategy as well as the staffing of the future management team.

On completion of the transaction, 60% of RWE´s generation portfolio will produce electricity with low or zero carbon dioxide emissions. The declared goal is to continue expanding this business on a global scale and spend up to EUR 1.5 billion (net) annually for this purpose.

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