Under the deal, which has been agreed in principle, RWE will receive E.ON’s renewables business, plus Innogy’s renewables and gas storage businesses. It will also receive a 16.67% stake in Eon, and pay the company €1.5bn.
E.ON will receive RWE’s 76.8% stake in Innogy. It will also make a voluntary public takeover offer in cash to the remaining shareholders, at €40 per share.
Late last year, Innogy announced plans to merge its UK retail business npower with that of rival SSE, to launch a new, independent energy retailer. Under the deal, announced in November and still subject to CMA approval, Innogy was to retain a minority stake of 34.4% in the business.
Once the E.ON-RWE deal, announced on Sunday (11 March), has gone through, E.ON plans to integrate Innogy into its existing business. RWE plans to combine Eon and Innogy’s renewables businesses into what it called a “leading European utility for renewables and security of supply with a broadly diversified portfolio of renewable and conventional generation assets”.
The agreement is subject to approval from both companies’ boards, and regulatory and anti-trust approvals.
Ellen Bennett
This article appeared first on edie’s sister title, Utility Week