RWE to offload 76.8% stake in Innogy SE to E.On

The European Commission has approved, under the EU Merger Regulation, the acquisition by E.ON of Innogy's distribution and consumer solutions business as well as certain of its electricity generation assets. The approval is conditional on full compliance with a commitments package offered by E.ON.

Following this asset swap, E.ON will focus on the distribution and retail supply of electricity and gas, whereas RWE will be primarily active in upstream electricity generation and wholesale markets.

To address the Commission's competition concerns, E.ON offered the following commitments:

• To divest most of E.ON's 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;
• To discontinue the operation of 34 electric charging stations located on German motorways. These stations will be operated by a new third party supplier in the future;
• To divest E.ON's business in the retail supply of electricity to unregulated customers in Hungary, including all assets and staff;
• To divest Innogy's entire business in the retail supply of electricity and gas in Czechia, including all assets and staff.

The Commission found that the divested assets and the discontinued charging stations, each constitute viable businesses that would enable suitable buyers to compete effectively with the merged entity in the relevant markets in the future.

The Commission therefore concluded that the transaction, as modified by the commitments, would no longer raise competition concerns. This decision is conditional upon the full compliance with the commitments.