The German energy group E.ON has formally launched a takeover offer for a 76.8% stake in RWE's subsidiary Innogy, in line with the total offer value of €40 per share proposal announced in March 2018. The closing of the takeover is not expected before mid-2019 and is subject to regulatory closing conditions and approvals by the relevant German antitrust authorities.
In exchange, RWE would receive a 16.67% participation in E.ON - the shares would be issued by E.ON via a 20% capital increase - and would take control of E.ON's entire renewable energies business once E.ON has gained control over Innogy. Under the transaction terms, RWE would take over Innogy's renewable and gas storage activities along with Innogy's participation in the Austrian utility Kelag. RWE would also receive the minority interests currently held by E.ON’s affiliate PreussenElektra in the RWE-operated nuclear power plants Gundremmingen (Gundremmingen, Bavaria) and Emsland (Lingen, Lower Saxony). The agreement also stipulates that RWE would provide a €1.5bn cash payment to E.ON.
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