E.ON to acquire innogy in asset-swap with RWE

A new deal between the German utilities will see E.ON focus on energy networks while RWE takes over the companies’ renewable units

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By Jonny Bairstow

E.ON is to buy innogy from parent company RWE in a deal based on a wide-ranging exchange of assets.

The agreement between the German utilities will see E.ON acquire RWE’s 76.8% stake in innogy, following approval from the boards of each company.

In return, E.ON will grant RWE 16.7% of its own shares, transfer most of its renewables business and let go of the minority interests held by its subsidiary PreussenElektra in a number of RWE-operated nuclear power plants.

RWE would receive innogy’s renewables business, gas storage business and its stake in the Austrian energy supplier Kelag.

The transaction further provides for a cash payment from RWE to E.ON of €1.5 billion (£1.1bn).

E.ON aims to focus on energy networks and customer solutions while the renewables businesses of both firms would be brought together under the umbrella of RWE.