Landmark deal between German utilities clears major hurdles in EU and at home
Reuters / Handelsblatt
The European Commission Tuesday that it will not raise antitrust objections to a major part of the deal between German utilities RWE and E.ON, . The approval clears the way for RWE to acquire the renewable energy businesses of both E.ON and Innogy, a former RWE subsidiary. The decision settles one piece of a complex聽asset swap between the utilities that would reshape German energy markets. The deal, agreed in 2018, would leave聽E.ON聽as a major power supplier, focused on energy grids and retail customers, while聽RWE聽focused on power production, including from renewables. the European Commission said regulators concluded that RWE鈥檚 purchase 鈥渨ould raise no competition concerns in the European Economic Area.鈥�
that Germany鈥檚 federal competition authority also approved another piece of the deal, namely RWE鈥檚 plan to acquire a 16.7 percent stake in E.ON. However, one major hurdle remains, Handelsblatt reports: the EU must still approve E.ON鈥檚 plan to acquire the network and sales divisions of RWE鈥檚 spin-off, Innogy.
Critics have argued the deal will give E.ON in particular too much market power. Competitors, including green electricity supplier Lichtblick and many municipal utilities, plan to oppose the merger.
