RWE clears important competition hurdles
- European Commission gives RWE antitrust clearance for acquisition of E.ON and innogy renewables operations
- German Federal Cartel Office approves the acquisition of a minority stake in E.ON by RWE
Today, the European Commission approved the acquisition of the renewables operations of E.ON and innogy by RWE without any conditions. The company had filed the transaction with the Commission for review in the middle of January. Also today, the German Federal Cartel Office approved RWE’s acquisition of a 16.7% interest in E.ON. This was preceded by extensive preliminary reviews by the Commission and the German Federal Cartel Office in order to obtain a precise picture of the effects of the transaction with E.ON on competition.
“This is very good news. Thanks to this decision, we have passed another milestone en route to turning RWE into a leading global player in the field of renewable energy,” declared Markus Krebber, CFO of RWE AG.
The far-reaching transaction with E.ON will involve RWE acquiring the renewable energy businesses of E.ON and innogy. Added to this are E.ON’s minority interests in the Emsland and Gundremmingen nuclear power stations operated by RWE, innogy’s gas storage business and its stake in the Austrian power utility Kelag. In addition, RWE will acquire a 16.7% equity interest in E.ON. RWE filed this part of the transaction with the UK Competition & Markets Authority yesterday. Furthermore, the acquisition of the US assets will be submitted to the US anti-trust authorities in the near future.
On execution of the transaction, which RWE intends to complete in the second half of 2019, RWE will become Europe’s third-largest producer of electricity from renewables and the world´s No. 2 in offshore wind in one fell swoop. Sixty percent of the generation portfolio of the RWE Group will produce electricity with low or zero carbon emissions. The objective is to continue expanding the business with Renewables on a global scale and spend up to €1.5 billion (net) every year for this purpose.