EC Probes E.ON-Innogy Merger

Laxman Pai
Monday, March 11, 2019

The European Commission has opened an in-depth investigation into German utility E.on's  takeover of certain assets from domestic Innogy, saying the transaction may lead to higher prices for consumers.

The deal, which is worth a reported €43 billion ($48 billion at today's conversion rate), includes Innogy's distribution and consumer solutions business, as well as certain electricity generation assets.

The Commission has concerns that the proposed acquisition may reduce competition in retail markets for electricity and gas in several Member States.

Commissioner Margrethe Vestager, in charge of competition policy, said: “European households and business customers should be able to buy electricity and gas at competitive prices. Our in-depth investigation aims to ensure that the acquisition of Innogy by E.ON leaves sufficient competition in the market to allow for this and does not lead to price increases.”

E.ON and RWE, which controls Innogy, are both energy companies based in Germany. They are active across the energy supply chain, from generation and wholesale to distribution and retail supply of electricity and gas. The two companies are engaged in a complex asset swap. 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.

As part of the asset swap, E.ON would acquire the distribution and consumer solutions business and certain electricity generation assets of RWE's subsidiary, Innogy.

Categories: People & Company News Energy Mergers & Acquisitions Offshore Energy Regulation

Related Stories

Timor Gap Boosts Stake in Finder Energy’s Timor-Leste Oil Fields

Seatrium Secures ABS Backing for Deepwater FPSO Design

Petronas to Leverage AI to Expedite Oil and Gas Exploration Activities

PV Drilling Takes Ownership of Noble Corporation’s Stacked Jack-Up Rig

Floating Offshore Wind Test Center Planned for Japan

Pandion Energy Divests Interests in Three Norwegian Assets to Inpex

Dutch Contractor Completes Malaysia’s Largest 'Rig-to-Reef' Decom Project

EnQuest Acquires Harbour Energy’s Vietnamese Assets

Japanese Oil and Gas Firm Enters Two Blocks off Malaysia

OMV Exits Ghasha Gas Project off UAE with Lukoil Stake Sale

Current News

MODEC Ramps Up Hammerhead FPSO Work After ExxonMobil's Go-Ahead

Aesen, DOC JV Targets Subsea Cable Logistics

Timor Gap Boosts Stake in Finder Energy’s Timor-Leste Oil Fields

SBM Offshore Starts Construction of FSO for Trion Oil Field off Mexico

Russia Targets 2028 for Sakhalin-3 Gas Project Start Up

Seatrium Secures ABS Backing for Deepwater FPSO Design

MDL Secures Cable Laying Job in Asia Pacific

Hibiscus Petroleum Starts Drilling at Teal West Field off UK

Yinson Production Nets DNV Approval for New FPSO Hull Design

Hanwha Ocean's Tidal Action Drillship Starts Maiden Job with Petrobras

Subscribe for AOG Digital E‑News

AOG Digital E-News is the subsea industry's largest circulation and most authoritative ENews Service, delivered to your Email three times per week

https://accounts.newwavemedia.com