The European Commission has approved the transaction between RWE and E.On, paving the way for the former to become one of Europe’s mainstays in renewable power generation.
The asset swap, which has been in the pipeline for more than a year, will see RWE acquire the renewable energy development business of both E.On and its former group company Innogy, with E.On taking on the consumer- and networks-facing elements of Innogy and E.On.
The transaction will see RWE pivot away from networks and focus almost entirely on power generation, and chief executive Rolf Martin Schmitz today restated the company’s intent to become one of the world’s leading renewable energy companies.
“Today, Brussels paved the way for the ‘new RWE’,” Schmitz said, adding that the firm intended to make annual investments of €1.5 billion to “consolidate and further strengthen this position. “Now we are putting all our energy into tackling this task,” he said.
RWE’s starting capacity will amount to 9GW, and the German power giant has set solar, wind and energy storage developments firmly in its crosshairs.
It said its project pipeline is “well fitted” with a view to strengthening its renewable base, and the firm wants to “consistently build” on its existing position.
“Scale plays a major role in achieving success when competing in the field of renewable energy at a global level. We are powerful enough for this market – in terms of financial strength, strategy and personnel,” added Markus Krebber, CFO at RWE.