RWE closes power asset swap with E.ON (Germany)

RWE has completed an asset swap with E.ON and taken over Innogy activities. E.ON will now focus on the distribution and retail supply of electricity and gas, whereas RWE will be primarily active in upstream electricity generation and wholesale markets.

In March 2018, E.ON and RWE reached an agreement and engaged in a complex asset swap. Under the agreement, E.ON acquired the 76.8 % stake in Innogy held by RWE. Meanwhile, RWE received a 16.67 % stake in E.ON (created through a capital increase) and most of E.ON's renewable energy business. RWE kept Innogy's renewable energy business (mostly wind, solar, hydropower, biomass, biogas); the minority interests held by the E.ON subsidiary PreussenElektra in the RWE-operated nuclear power plants Gundremmingen (25%) and Emsland (12.5%) in Germany; Innogy's gas storage business; and the 37.9 % stake in the Austrian energy utility KELAG held by Innogy. Beyond the stake in Innogy, RWE paid €1.5bn to E.ON.

In September 2019, the European Commission approved the acquisition by E.ON of Innogy's (RWE) distribution and consumer solutions business as well as certain of its electricity generation assets. E.ON's commitment package includes the divestment from most of its customers supplied with heating and electricity in Germany and corresponding assets for the buyer to carry on operations. E.ON also pledged to discontinue the operation of 34 electric charging stations in the country and to divest from the retail supply of electricity to unregulated customers in Hungary and from Innogy's entire business in the retail supply of electricity and gas in Czech Republic.