E.ON cancels German nuclear spin-off plans

E.ON has abandoned plans to spin off its German nuclear power plants. The company operates three nuclear power stations in Germany and has minority stakes in three others, accounting for […]

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By Priyanka Shrestha

E.ON has abandoned plans to spin off its German nuclear power plants.

The company operates three nuclear power stations in Germany and has minority stakes in three others, accounting for around 8% of its generation in the country.

E.ON said it has changed course on the nuclear plants and won’t include them in its new company called Uniper, which is expected to be set up next year.

It is however sticking to spinning off other parts of its conventional power business.

The company plans to focus on renewables, energy networks and customer solutions and nuclear energy is “not a strategic asset”.

The news follows the German Government’s plans to phase out nuclear energy by 2022.

E.ON CEO Johannes Teyssen said: “This decision safeguards us against risks to the implementation of our corporate strategy. We cannot and will not wait for possible policymaking decisions that could delay the spinoff of Uniper.

“Our decision to retain our nuclear power business in Germany has no implications for our fundamental strategy. E.ON will focus on the new energy world.”

The company’s nuclear power business in Germany will be managed by a separate operating unit in Hanover.

E.ON also warned it could see a substantial net loss for 2015.