E.ON-RWE deal likely to revolutionize Germany energy industry
Date: 2018-03-12   Author: Dhananjay Punekar  Category: #industry

In a strategic move that has been touted to transform the energy sector in Germany, E. ON SE has decided to acquire Innogy from RWE AG. Codenamed ‘Live Wire’, this agreement between E.ON, one of the topmost German electric utility firms and RWE marks a rapid shift of utility firms across the country towards sustainable energy generation.

According to the Wall Street Journal, E. ON SE will acquire nearly 76.8% stake in RWE’s Innogy SE, while RWE will receive 16.67%  of E.ON’s  equity shares in return. Based on the agreement, which consists of both asset swapping and issuing of shares, E.ON will purchase Innogy’s coveted regulated power systems and consumer business. RWE on the other hand, is likely to obtain the renewable energy businesses of both - Innogy as well as E.ON.

Experts claim that the revenues of both E.ON and RWE had been adversely impacted due to the German Chancellor’s decision to reduce the nuclear power production after the Fukushima nuclear disaster in 2011. They also claim that the escalating demand for renewable energy in the country had resulted in power supply costs & profits for the utilities reducing drastically. Incidentally, this scenario had forced the firm to restructure its operational procedures and areas of investment.

For the uninitiated, E.ON SE is the biggest investor in the country’s renewable energy sector. RWE is the largest energy generator across Germany focusing on power generation through conventional sources.  

The current agreement between both these utilities is subject to anti-trust implications across Europe – the region that houses a major presence of all the three competing electric utility firms. For the record, in the UK, E.ON and Innogy are two among the six utilities providing power supply to households.

In Germany, both these firms are pivotal contenders in the electric energy market. Both Innogy and E.ON have grid operations overlapping the Hungary and Czech & Slovakia republics.



About Author


Dhananjay Punekar

Dhananjay Punekar

Dhananjay currently works as a content writer at AlgosOnline. A post graduate in mathematics as well as business administration, he worked as a process executive in Infosys BPO Limited before switching his professional genre. Following his childhood passion, he opted fo...

Read More

More from Dhananjay


Post Recommendents

Automotive industry behemoth Nissan forays into home energy space
Author: Saif Ali Bepari

Nissan, the Japanese automotive and transportation market leader, has apparently unveiled its first stand-alone solar, storage and vehicle charging system without any assistance of traditional utilities. As per reliabl...


Chinese electronics giant Sogou unveils Smart Recording Translator
Author: Saif Ali Bepari

Regarded as one of most prominent leader and innovators of China electronics and media industry, Sogou Inc., has recently announced the commencement of the sales of one of its appliances. As per reliable sources, this ...


Royal Dutch Shell plans to make a comeback in polymers industry
Author: Saif Ali Bepari

Touted as the world’s foremost oil and natural gas major, Royal Dutch Shell has apparently decided to re-enter the polymers and advanced materials industry by constructing a gigantic petrochemicals complex in the...