E.ON and innogy integration to retain the name E.ON
E.ON and innogy have made the first major decisions regarding the plans for E.ON’s future brand, organisational setup, and innovation activities. The new company will retain the name E.ON as a result of decisions set to be implemented after the closing of the transaction, which is subject to the approval of the relevant antitrust and regulatory authorities.
The structures of E.ON´s German regional suppliers and innogy´s German regional companies are to be retained. A structure comparable to E.ON's regional utilities is to be established in innogy's core supply area. For this purpose, innogy’s concessions business, Westnetz, its shareholdings in municipal utilities, and its cooperations with municipalities will be integrated. The objective is for operating units to continue to have as much room for manoeuvre and to be as close to customers as possible. This is why the corporate headquarters will be set up to primarily focus on key management tasks.
According to a press release: the new E.ON wants to make an “important contribution to the success of the energy transition and to climate protection in Europe. For this purpose, it will further enhance its innovative strength. It therefore intends to establish an innovation team at corporate headquarters that reports to the CEO and that works across the company’s product ranges and markets”.
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In addition, E.ON and innogy have completed an initial validation of the previously identified EUR 600 to EUR 800 million in synergy potential starting from 2022 onwards. innogy, E.ON and RWE, in consultation with their Group Works Councils, reached an Agreement in Principle on Collective Bargaining for Germany with the unions ver.di and IGBCE in May.
Uwe Tigges, CEO of innogy SE said: “The first joint decisions with E.ON regarding integration planning are the result of an open and constructive dialogue. I’m confident that innogy’s strengths will live on in the new company.”
E.ON CEO Johannes Teyssen said: “We’re very satisfied with the initial results of our joint integration planning. After the successful closing of the transaction, these decisions will enable us to ensure that the new E.ON is resolutely customer-centric and innovative.”
The transaction continues to be subject to the approval of the relevant antitrust and regulatory authorities. E.ON and innogy will remain independent companies until the transaction closes.
