E.ON to acquire RWE’s 76.8% stake in innogy

By Sophie Chapman
The German energy firm, E.ON, has reached an agreement with German utility, RWE, to acquire its 76.8% stake in innogy SE.

The German energy firm, E.ON, has reached an agreement with German utility, RWE, to acquire its 76.8% stake in innogy SE.

innogy SE, which has been valued at €22bn (US$27.1bn) was created from RWE’s renewables, grid, and energy sectors in 2015.

E.ON will purchase the stake in the German subsidiary through an exchange of assets and participations.

The deal, which is still awaiting approval from E.ON and RWE’s boards, will see the energy firm exchanging 16.67% shares in E.ON SE for RWE’s majority share in innogy SE.

SEE ALSO:

This will see E.ON transfer most of its renewable business – the deal seeks to transform Germany’s current energy industry, aiding utilities transition towards renewables.

E.ON is also expected to make a voluntary takeover offer of €40 per share in cash to innogy SE shareholders.

 “This gives us two powerful companies in the international marketplace,” stated Armin Laschet, State Premier of North Rhine-Westphalia, where all three firms are based, Bloomberg reported.

Following the announcement,

Although the deal is worth approximately €22bn, it is anticipated that it could almost double with the addition of debt and enterprise value, with Bloomberg stating it could reach €43bn ($53bn).

Share

Featured Articles

ABB scoops global energy automation technology award

ABB excels in innovating subsea systems and electrification services and providing underwater control solutions according to Frost & Sullivan

INEOS Köln awarded €770,000 for green hydrogen study

State funding will support feasibility study for the construction of 100MW water electrolysis plant for green hydrogen at the INEOS site in Köln

UK receives £2.7bn upfront funding to boost grid capacity

Ofgem's proposed package totals £20.9bn as part of its five-year vision to build reliable and clean energy

Poland and Germany best placed for gas-to-coal switch

Oil & Gas

Leclanché fire retardant additive cuts battery fire risk

Renewable Energy

DP World receives first all-electric terminal tractor

Sustainability