It had already approved RWE’s acquisition of renewable assets from Innogy and E.on in February, but investigated whether E.on acquiring retail assets would reduce competition in various EU markets.
The EC’s approval allows integration of the restructured companies to begin, with E.on’s takeover of RWE’s 76.8% stake in Innogy expected tomorrow (18 September).
EC granted the merger on the condition that E.on exits part of its electricity retail business in Hungary and all of Innogy’s electricity and gas retail business in the Czech Republic.
Under the deal announced in March 2018, RWE will receive the renewable assets and gas storage businesses of its subsidiary Innogy, as well as those of E.on.
Meanwhile, E.on will buy 86.2% of Innogy and its grid and retail business — though including shares acquired on the market in recent months, E.on will actually hold 90% of Innogy shares.
In return, RWE will acquire a 16.67% "effective participation" in E.on, with its CEO Rolf Martin Schmitz to sit on E.on’s expanded, 20-member supervisory board.
RWE is due to receive E.on’s renewable energy and gas storage assets by the end of September, followed by those of Innogy in early 2020, it stated. The utility will also pay E.on €1.5 million in compensation as part of the deal.
Once the deal is completed, RWE will have a renewables portfolio of more than 9GW, the company stated. It plans annual investments of €1.5 billion and new renewable energy capacity additions of between 2GW and 3GW.