E.ON to acquire RWE's Innogy for €22 billion
E.ON SE has agreed to acquire Innogy SE from German rival RWE AG in a deal involving shares and asset swaps, E.ON SE will emerge with the retail and network businesses of both companies, while RWE will end up owning the combined renewable-generation businesses as well a large stake in E.ON. The statement came after Bloomberg News reported that the companies were in advanced talks, citing people familiar with the matter. The deal values Innogy at about €22bn ($27.1billion)
The agreement sees E.ON acquiring all of RWE's 76.8% stake in Innogy, giving RWE 16.7% of E.ON's equity in return. E.ON will also make an offer to Innogy's minority shareholders that values the company at 40 euros a share, or about 22bn euros in total.
RWE will end up with E.ON's minority stakes in two nuclear power plants, Innogy's gas storage business and Innogy's stake in an Austrian energy supplier.
RWE will make a cash payment to E.ON of €1.5bn. The transaction will be enacted in several steps, subject to regulatory and board approvals.
