Eon and Innogy: EU allows merger of energy companies
The energy company Eon may take over the RWE subsidiary Innogy. Eon has assured that the merger will not lead to higher prices.
The EU Commission has approved the acquisition of the RWE subsidiary Innogy by the energy company E.on. A number of commitments made by E.on ensured that the merger in the countries concerned would "not result in lower choice and higher prices," said EU Competition Commissioner Margrethe Vestager.
E.ON and RWE announced plans for their realignment on the German energy market in March 2018. Through them, E.ON, in the future without its own power plants, will primarily become a supplier of electricity and gas, and RWE, above all, a power producer and wholesaler. In addition, RWE will receive a stake of 16.7 percent in E.ON's business. The EU Commission had initially expressed concerns over the acquisition of Innogy. These affected, among other things, the German market for the supply of heating power and motorway charging stations for electric vehicles. In the gas and electricity business in the Czech Republic and in power supplies to companies in Hungary, the Brussels-based competition watchdog initially saw potential problems.
These are now eliminated. E.on has agreed to sell its contracts with most heating power customers in Germany and stop operating 34 charging stations for e-vehicles on highways. These are now taken over by other providers. The Group also promised to sell its business in unregulated electricity retailing on the Czech market.
In implementing these commitments, "there is no longer any competition concerns", the Commission said. In February, the agency had already approved the acquisition of parts of the E.ON Group for the production of green and nuclear power by RWE. The management of E.on wants to complete the takeover in September. The merger fears the loss of up to 5,000 jobs at Innogy. The majority of the 40,000 employees will be able to switch to E.on.