Eon is set to acquire Innogy from RWE, in a far-reaching asset swap that will see Eon concentrate on retail and networks, while RWE focuses on renewables and other forms of generation.

Under the deal, which has been agreed in principle, RWE will receive Eon’s renewables business, plus Innogy’s renewables and gas storage businesses. It will also receive a 16.67 per cent stake in Eon, and pay the company EUR 1.5 billion.

Eon will receive RWE’s 76.8 per cent stake in Innogy. It will also make a voluntary public takeover offer in cash to the remaining shareholders, at EUR 40 per share.

Late last year, Innogy announced plans to merge its UK retail business npower with that of rival SSE, to launch a new, independent energy retailer. Under the deal, announced in November and still subject to CMA approval, Innogy was to retain a minority stake of 34.4 per cent in the business.

Once the Eon-RWE deal, announced on Sunday (11 March), has gone through, Eon plans to integrate Innogy into its existing business. RWE plans to combine Eon and Innogy’s renewables businesses into what it called a “leading European utility for renewables and security of supply with a broadly diversified portfolio of renewable and conventional generation assets”.

The agreement is subject to approval from both companies’ boards, and regulatory and anti-trust approvals.

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