The German energy group Innogy has reached legally binding cooperation agreements with E.ON and RWE as part of the takeover bid launched by E.ON in April 2018. Two separate binding agreements have been signed, one with E.ON and another one with RWE. Both concern the acquisition of a 76.8% stake in Innogy by E.ON and the planned integration of Innogy’s renewables and gas storage business into RWE. The takeover was formally unveiled in April 2018 and its closing is not expected before mid-2019. Besides, it is subject to regulatory closing conditions and approvals by the relevant German antitrust authorities.
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.
After the deal, E.ON will focus on networks and retail activities, while RWE will be focusing on renewable and conventional power generation. E.ON would acquire 76.8% of Innogy and in exchange, RWE would receive a 16.67% participation in E.ON and would take control of E.ON's entire renewable energies business once E.ON has gained control over Innogy. 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.