The major asset swap between utility giants RWE and E.ON has been completed, with RWE taking over renewable energy subsidiary innogy’s operations, as well as Austrian utility, Kelag, thus making it Europe’s third-largest renewable energy company.
The transfer of innogy’s solar, wind and hydropower assets follows the final filing of the merger in June.
The asset swap saw E.On first fully acquire innogy, which held RWE’s power distribution and renewables interests, followed by Eon and Innogy’s combined renewables businesses being sold to RWE.
The merger drew the ire, and legal action, from several smaller energy suppliers in the companies native Germany, following approval of the transaction by the European Commission. The deal was first announced in early-2018.
RWE plans net investments of approximately €5 billion ($5.6 billion) in Europe, North America and Asia/Pacific, in order to enlarge its existing renewable energy portfolio to over 13GW. €1 billion of this sum is envisaged for projects in Germany. In the course of the takeover about 2,700 employees are transferring from innogy to RWE.
Markus Krebber, CFO of RWE AG, who spearheaded the integration project, is extremely pleased: “We have a wonderful starting point: a huge worldwide renewables portfolio, two teams that complement each other perfectly with many years of experience, and a strong investment programme. This will enable us to strengthen our leading position in the market even further.”
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