E.ON and RWE have agreed that RWE will transfer its entire stake of 76.8 per cent in innogy to E.ON via a far-reaching exchange of assets and businesses. E.ON will have a clear focus on intelligent networks and customer solutions. RWE will become a broadly diversified power producer optimally complementing a large portfolio of renewables assets with its conventional energy generation and linking the two with its existing trading platform.
RWE will sell its 76.8 percent participation in innogy to E.ON for: (I) a resulting shareholding in E.ON of 16.67 per cent from authorised capital as part of a non-cash capital increase by E.ON; (II) substantially all of E.ON’s renewables activities; (III) innogy’s renewables business; (IV) the minority stakes currently held by E.ON’s subsidiary PreussenElektra in the RWE-operated power plants Emsland and Gundremmingen, and (V) innogy’s gas storage assets and its participation in the Austrian energy utility Kelag. Additionally, the transaction agreement provides for a payment from RWE to E.ON of €1.5 billion. E.ON will also make a voluntary public takeover offer in cash to the current minority shareholders of innogy. The transaction is expected to close by the end of 2019. Until the transaction completes, E.ON, RWE and innogy remain separate businesses and competitors.
