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    Categories: Energy and power

RWE to acquire E.ON and Innogy, files deal with European Commission

In a recent filing with the European Commission, German energy group RWE expressed its intension of acquiring the businesses of E.ON SE and Innogy SE, both of which are a part of the renewable energy industry.

Reportedly, the submission with the European Commission is the first step towards an acquisition as this is used as a control procedure for a merger, considering the fact that there had been substantial exchange of assets between RWE and E.ON. The EU antitrust regulators have a deadline of 26 February to make a decision. Within the timespan, the transaction can either be cleared following a preliminary review or a five-month scrutiny can be launched in case there are major concerns regarding the transaction.

In March 2018, RWE sold a majority stake of 76.8% that it had in Innogy to E.ON but retained the renewables business of Innogy and merged it with the renewable assets of E.ON.

E.ON will transfer a minority stake in Emsland and Gundremmingen nuclear power plants that are held by E.ON subsidiary PreussenElektra. These power plants are presently operated by RWE. Additionally RWE will receive a 16.67% stake in E.ON. Innogy’s stakes in the energy supplier Kelag of Austria as well as its gas and renewables storage businesses will also be transferred to RWE.

RWE plans to submit the transaction for approval with German and UK regulatory authorities as well as with U.S. competition authorities for the acquisition of the US assets. All such activities are reported to be completed within the first half of 2019 while the RWE-E.ON deal is anticipated to be completed within the second half of the year.

Reports suggest that the deal, if successfully completed will place RWE in the leading position among renewable energy suppliers in Europe with more than 20,000 employees. Remarkably, 60 percent of RWE’s power generation portfolio will come to produce low to zero carbon emitting power. The company further aims at expanding its renewables business and invest up to €1.5 billion net per year.
Paroma Bhattacharya:

Paroma currently works as a content developer for CMFE Research and a couple of other platforms. Fortified with a post-graduation degree in Journalism and Mass Communication, she delved head long into a writing career, creating resourceful and information enriched content in diverse fields. Apart from being a compulsive reader she also loves to cook, paint and travel. UPDATE: Paroma Bhattacharya no longer writes for CMFE Research. Should you have any query related to the content or wish to get in touch with us, please reach out to ‘Pankaj Singh’. or Email - pankaj.s@cmferesearch.com

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