Germany’s largest utilities are set to move closer together after striking a deal for Eon to acquire RWE’s share in Innogy with RWE taking a significant stake in Eon in return.
The agreement, subject to shareholder approval, would also see RWE pay Eon €1.5bn in cash Eon to make a buy offer to Innogy shareholders.
Eon would acquire RWE’s 76.8% stake in Innogy, and some other interests, with RWE taking a significant minority stake, 16.67%, in Eon’s business.
Eon would then focus on energy networks and retail, with RWE more generation focused.
The companies said Innogy would be integrated fully into the Eon group with the transaction to take place “in several steps”.
Prior to the deal, Innogy’s retail business Npower was set to merge with SSE.
The Energyst is seeking on record clarification from RWE on whether that transaction will be affected.
SSE has issued a statement indicating the deal remains on and that the company “does not believe that its agreement with Innogy should be affected by the EON/RWE agreement”.
See Eon’s announcement on the deal here.