Published: Mon, March 12, 2018
Worldwide | By Gretchen Simon

German giants Eon and RWE strike major deal, move closer together

German giants Eon and RWE strike major deal, move closer together

Plans to carve up Innogy (IGY.DE) between parent RWE (RWEG.DE) and rival German utility E.ON (EONGn.DE) drove its shares sharply higher on Monday, lifting the combined value of the three German energy firms by 5.7 billion euros ($7 billion).

The in-principle agreement involving huge asset swaps is part of a major restructuring of Germany's energy market as Europe's powerhouse switches from conventional to renewable power.

Their proposed transaction comes just two years after RWE spun off its renewable, retail and network operations to form Innogy and E.ON split off some of its business to create Uniper (UN01.DE).

Eon would acquire RWE's 76.8% stake in Innogy, and some other interests, with RWE taking a significant minority stake, 16.67%, in Eon's business.

Ex-Trump Aide Sam Nunberg 'Highly Suggests' POTUS Should Meet With Mueller
A CNN interviewer told Nunberg she smelled alcohol on his breath but he denied he had been drinking. "People I say I had a meltdown on TV", he said.

Uwe Tigges, chief executive officer of German ecological power supplier Innogy SE arrives for the company's annual news conference in Essen, Germany March 12, 2018. The transaction further provides for a cash payment from RWE to E.ON of € 1.5 billion. Further, RWE will receive the minority interests now held by E.ON's subsidiary PreussenElektra in the RWE-operated nuclear power plants Gundremmingen and Emsland.

For the transaction to complete, additional conditions are to be met by the companies, including approvals from antitrust and regulatory authorities.

The agreement on Innogy, announced Sunday, transfers "most" of E.ON's renewable business to RWE and the "entire" renewable business of Innogy, though E.ON would be in control of the green entity as its largest stakeholder.

That would position RWE, which relies heavily on coal and gas-fired power plants, as a champion of the shift away from fossil fuels towards a more sustainable mix of energy sources. The deal requires the approval of the board of directors at Eon and RWE.

Like this: