E.ON-RWE Deal Steps Closer to Finish
The European Commission has approved E.ON’s acquisition of innogy’s distribution and consumer solutions business and certain electricity generation assets.
E.ON and RWE, which controls innogy, have been engaged in an asset swap since March 2018 in which E.ON is taking over RWE’s 76.8% stake in innogy, while RWE is obtaining, among other things, all E.ON’s major renewable energy activities and innogy’s renewable energy business, as well as a 16.7% minority stake in E.ON.
With the approval in place, E.ON said it now plans to swiftly carry out the integration of innogy into the group.
“The new E.ON’s future begins today,” said E.ON CEO Johannes Teyssen. “By combining our strengths with innogy’s, we’re creating a company whose smart grids are bringing more and more green power to people, companies, and communities and linking them together.”
This latest approval from the European Commission is linked to various commitments by E.ON to exit certain businesses. However, the Commission concluded that the transaction, as modified by the commitments, would not raise competition concerns.
“It is important that all Europeans and businesses can buy electricity and gas at competitive prices. Today, we can approve the acquisition of Innogy by E.ON because the commitments offered by E.ON will ensure that the merger will not lead to less choice and higher prices in the countries where these companies operate,” said Commissioner Margrethe Vestager, in charge of competition policy.
In late February, RWE received approval from Brussels and Bonn for the takeover of E.ON’s and innogy’s renewables businesses and for the planned acquisition of a stake in E.ON.
Following the completion of the acquisition, RWE will operate approximately 8GW of renewable energy assets, including offshore and onshore wind, as well as hydro and photovoltaics.
E.ON said its renewables segment will be transferred to RWE by the end of September, with innogy’s following as soon as possible next year.