The European Commission has approved the acquisition by E.ON of Innogy's (RWE) distribution and consumer solutions business as well as certain of its electricity generation assets. The approval is conditional on full compliance with a commitments package offered by E.ON.
E.ON's commitment package includes the divestment from most of its customers supplied with heating and electricity in Germany and corresponding assets for the buyer to carry on operations. E.ON will also discontinue the operation of 34 electric charging stations in the country. E.ON will divest from the retail supply of electricity to unregulated customers in Hungary and from Innogy's entire business in the retail supply of electricity and gas in Czech Republic.
In March 2018, E.ON and RWE reached an agreement and engaged in a complex asset swap. Under the agreement, E.ON will acquire the 76.8 % stake in Innogy held by RWE. Meanwhile, RWE will receive a 16.67 % stake in E.ON (created through a capital increase); nearly the entire renewable energy business of E.ON. RWE will also keep Innogy's renewable energy business; the minority interests held by the E.ON subsidiary PreussenElektra in the RWE-operated nuclear power plants Gundremmingen (25%) and Emsland (12.5%) in Germany; Innogy's gas storage business; and the 37.9 % stake in the Austrian energy utility KELAG held by Innogy. Beyond the stake in Innogy, RWE will pay €1.5bn to E.ON.
E.ON will focus on the distribution and retail supply of electricity and gas, whereas RWE will be primarily active in upstream electricity generation and wholesale markets.