The European Commission is investigating the current asset swap transaction between the German energy groups E.ON and RWE's subsidiary Innogy to get an accurate picture of its potential consequences under the EU competition rules. It will examine whether it would harm competition or jack up prices in the German power retail market. So far, it has sent questionnaires to competitors and customers of the two utilities in order to check if they compete closely with each other and if there are other potential alternatives for customers. The results are currently scheduled for March 2019.
RWE filed the acquisition of E.ON's renewable energy business with the European Commission at the end of January 2019. This filing is the first step of a merger control procedure required to complete the agreement. The transaction was announced in March 2018. RWE will receive a 16.67% stake in E.ON, take over E.ON's entire renewable energy businesses and E.ON's minority interests in the Emsland and Gundremmingen nuclear power plants operated by RWE as well as Innogy’s gas storage business and its stake in the Austrian power utility Kelag. In exchange, E.ON will acquire 76.8% of RWE's subsidiary Innogy, which 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 focus on renewable and conventional power generation. The two companies intend to complete the transaction objectives in the second half of 2019.