Eon has announced “important milestones” have been reached in its transaction to acquire Innogy from RWE.
The major asset swap was announced in March this year and will see Eon concentrate on the retail arm and networks, while RWE focuses on renewables.
In its H1 report published on Wednesday (8 August) Eon said it had passed several milestones toward implementation.
In May, Eon reached a collective-bargaining agreement in principle with trade unions ver.di and IGBCE. This was achieved together with RWE and Innogy and in consultation with the group works councils.
This was followed in July by a framework agreement with the Eon SE works council and group works council. Both of these agreements “establish reliability for all employees on the road toward the new Eon,” the company said.
Also in July, Eon and Innogy agreed to “work together constructively, to the degree permitted by law, in preparing for the integration”.
After receiving a 76.8 per cent stake in Innogy, Eon made a voluntary public takeover offer in cash to Innogy’s minority shareholders at €40 per share.
At the end of the extended offer period (25 July), about 9.4 per cent of Innogy’s stock was tendered to Eon, which means together with the 76.8 per cent stake from RWE, this equals 86.2 per cent of Innogy’s share capital.
Eon announced it had “successfully completed” its voluntary public takeover offer to Innogy minority shareholders on 30 July.
Subject to official approvals, Eon said it does not expect completion before mid-2019.
Marc Spieker, Eon’s chief financial officer, said: “The agreed-on acquisition of RWE’s majority stake alone would’ve enabled us to integrate Innogy into Eon.
“We’re therefore very satisfied with the outcome of our voluntary public takeover offer and are pleased that many other Innogy shareholders accepted our offer.
“Numerous options are available to us for the legal aspects of the integration after closing.
“We’re now focusing on the preparations for this integration and a swift antitrust approvals process.”
Speaking after the result of the voluntary public takeover, Spieker, said: “We want to and will work openly, transparently and fairly with Innogy to create together a new Eon that is fully customer-oriented with intelligent networks and innovative customer solutions.
“On the one hand, we will continue to leverage the synergy potential of €600 to €800 million and on the other hand, we will tap growth potential for the new Eon.”
Eon could cut up to 5,000 jobs under the major asset swap deal with RWE.
Earlier this month the company confirmed it is “seeking” to cut 500 jobs across its UK operations. The energy company employs more than 9,400 people in the UK.
Meanwhile Innogy’s Npower plans to merge with SSE’s energy retail arm to create a new energy supply giant. SSE shareholders voted in favour of the proposed merger on 19 July.
Subject to approval from the Competitions and Market Authority, the new retail company is expected to be listed on the London Stock Exchange in the last quarter of 2018 or the first quarter of 2019.