E.ON will acquire RWE's 76.8% stake in Innogy (Germany)

The German energy groups RWE and E.ON have reached an agreement in principle, according to which RWE shall divest its 76.8% stake in Innogy to E.ON, at an estimated price of €40 per share. 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.



Binding agreements have not been signed so far and boards of both companies are still required for the transaction approval. The transaction, which would take effect on 1 January 2018 with economic effect, comes less than two years after both companies split up their activities to separate fossil fuel power plants and renewable assets. Following the completion of the transaction, RWE would acquire interests in the renewable sector and would be in a better position to offset its dwindling lignite and nuclear activities with the expansion of its renewable assets, while E.ON would become a larger regulated business by adding more network activities.



In January 2018, E.ON already agreed to sell a 46.65% interest in its power plant and trading unit Uniper to the Finnish company Fortum for €3.76bn.