E.ON and innogy plan €600-800m in synergies by 2022 (Germany)

German energy groups innogy and RWE have made their first major decisions regarding the planned integration of innogy into E.ON and its future organization as part of its breakup from RWE announced earlier in 2018. Companies have identified €600-800m in synergy potential starting from 2022.

innogy's concessions business and its shareholdings in municipal utilities will be integrated into E.ON and the new company will retain the E.ON name. However, both E.ON's regional suppliers and innogy's regional companies will retain their existing corporate structure. innogy will establish a structure comparable to E.ON's regional utilities in its core supply area. Their decisions are slated to be implemented after the transaction once they obtain approval from the relevant antitrust and regulatory agencies.



innogy's subsidiary of RWE was set up in 2016 by splitting the renewable power generation, gas and power network and retail businesses into a separate entity. Earlier in July 2018, innogy reached legally binding cooperation agreements with E.ON and RWE as part of the takeover bid launched by E.ON in April 2018, according to which Innogy’s renewables and gas storage business would be transferred to RWE, while E.ON would acquire a 76.8% stake in Innogy's remaining assets. After the deal, E.ON will focus on networks and retail activities, while RWE will focus on renewable and conventional power generation. E.ON will acquire 76.8% of Innogy and in turn, RWE will receive a 16.67% participation in E.ON and will take control of E.ON's entire renewable energies business, once E.ON has gained control over Innogy.