Tuesday 17 September 2019

EU conditionally clears E.ON’s takeover of innogy’s assets

The European Commission has cleared E.ON's proposed purchase of innogy's network and retail assets, subject to certain conditions.

E.ON and innogy's parent company RWE are both energy companies based in Germany and are active across the supply chain, from generation and wholesale to distribution and retail supply of electricity and gas.

The Commission identified the threat of reduced competition in sectors of three countries, including the Czech Republic, Germany and Hungary, where their activities mostly overlap.

Under the commitments made by E.ON, it will divest most of its customers supplied with heating electricity in Germany and at the option of the purchaser, all assets that may be needed to operate effectively in the market as well as discontinue the operation of 34 electric vehicle (EV) charging stations on German motorways – they will be operated by a new third party supplier.

The energy giant will also divest its business in the retail supply of electricity to unregulated customers in Hungary, including all assets and staff and divest innogy's entire business in the retail electricity and gas supply in Czechia, including all assets and staff.

Commissioner Margrethe Vestager, in charge of competition policy said: “It is important that all Europeans and businesses can buy electricity and gas at competitive prices.

“Today, we can approve the acquisition of innogy by E.ON because the commitments offered by E.ON will ensure that the merger will not lead to less choice and higher prices in the countries where these companies operate.”

E.ON CEO Johannes Teyssen added: “The new E.ON’s future begins today. The integration of innogy will create a company fully dedicated to putting customers at the centre of everything it does. We want to partner with our customers to actively shape the new energy world while becoming more innovative, using energy with ever-greater efficiency and making an effective contribution to climate protection.

“By combining our strengths with innogy’s, we’re creating a company whose smart grids are bringing more and more green power to people, companies and communities and linking them together.”