Finnish power utility Fortum is to launch an €8 billion (£7bn) takeover offer for E.ON’s Uniper.

The bid for E.ON’s 46.65% interest amounts to €3.76 billion (£3.3bn).

The total equity value of the offer is €8.05 billion (£7.05bn) for all outstanding shares of Uniper.

The firms have signed an agreement, under which E.ON has the right to decide to tender its stake in the fossil fuel generation business into the public takeover offer in early 2018 for the same consideration offered to all shareholders.

Pekka Lundmark, Fortum’s President and CEO said: “I am confident that our investment will strengthen the position of both companies to advance Europe’s energy transition and believe that all stakeholders will greatly benefit.”