Eon, the German utility, is in advanced discussions to strike a complex deal worth more than €20bn to acquire Innogy, the renewable energy business that was spun out and still majority controlled by Germany’s RWE. The deal, which may be announced as soon as Monday evening, will mark the latest high-profile transaction in the German energy market just months after Eon sold a minority stake in its former subsidiary Uniper to Finland’s Fortum for €3.8bn. A deal to acquire Innogy would be a bold move for Eon, offering the clearest sign yet that the German utility is back on the offensive after years of retrenchment and a series of harsh regulatory blows. The deal comes after both Eon and RWE were hit hard by the so-called Energiewende, Germany’s radical shift away from fossil fuels towards renewables, which put intense pressure on the two group’s core conventional power operations. Germany’s leading power companies also suffered another severe setback in 2011, when the government in Berlin decided to accelerate the phase-out of nuclear power in response to the Fukushima disaster.
FT 10th March 2018 read more »