EU Commission approves E.ON’s takeover of innogy
Following the European Commission’s clearance of the takeover of innogy, E.ON intends to swiftly carry out the integration of innogy into the Group.
“The new E.ON's future begins today. The integration of innogy will create a company fully dedicated to putting customers at the centre of everything it does. We want to partner with our customers to actively shape the new energy world while becoming more innovative, using energy with ever-greater efficiency, and making an effective contribution to climate protection,” said Johannes Teyssen, E.ON CEO.
The innogy integration will enhance the company's performance in the interest of its customers, enterprise partners, employees, and shareholders. “By combining our strengths with innogy's, we're creating a company whose smart grids are bringing more and more green power to people, companies, and communities and linking them together. A company that develops innovative and attractive products and services for more than 50 million customers in 15 countries. That same company will provide more than 70,000 employees with jobs that are secure well into the future. And will offer shareholders attractive value and growth prospects,“ Teyssen added.
The European Commission's clearance is linked to various commitments by E.ON to exit certain businesses. These include innogy's electricity and gas retail business in the Czech Republic and part of E.ON's electricity retail business in Hungary. The commitments in Germany relate primarily to a significant part of E.ON's heating electricity business, and the construction and operation of a number of electric-vehicle charging stations on motorways.
After E.ON completes the takeover of innogy, the E.ON Supervisory Board will be increased to 20 members. “The purpose of the enlargement is to give innogy employee representatives a voice on the E.ON Supervisory Board and to ensure that we can draw on the experience of the shareholder representatives from innogy's current Supervisory Board. RWE, which will soon be our biggest shareholder, will have a representative on the Supervisory Board as well,” said Karl-Ludwig Kley, E.ON Supervisory Board Chairman.
E.ON has now also filled the future executive positions that are competitively sensitive and has thus appointed almost the entire level of management below the Management Board. As was the case for those selected in June, the newly appointed executives also come in almost equal parts from E.ON and innogy. “We selected the most appropriate person for each role in the new E.ON. I'm very pleased that the future leadership team will be equally represented by E.ON and innogy and that we increased the proportion of female executives at this level to approximately 25 percent,” Teyssen said.
As planned, the new E.ON will be based in Essen, and the Brüsseler Platz office tower will remain its corporate headquarters. “This, along with RWE's reorganisation, means Essen retains its standing as an energy capital,” Teyssen said.
From Essen, the company will manage its network and customer solutions business in 14 European countries and Turkey. E.ON's corporate headquarters in Essen will also house its innovation centre, which will provide an important impetus for a successful energy transition in Europe and for reducing carbon emissions. This fits with the company's plan to eventually create new, future-oriented jobs especially in Essen. In many respects, Essen offers ideal characteristics to serve as the company's corporate headquarters. These include good infrastructure, an attractive setting in the heart of the Ruhr region and North Rhine-Westphalia, and a thriving cultural scene. “
RWE's nearly 76.8% stake in innogy will be transferred to E.ON. RWE's 16.7% stake will make it E.ON's biggest shareholder. As E.ON's takeover offer from last year to minority shareholders will be completed by the end of next week, its innogy stake will then increase by just over 9.4 percentage points. Together with the shares acquired on the market in the past months, E.ON will then hold a total of 90% of innogy shares. In addition, E.ON expects to have appropriate representation on innogy's Supervisory Board as quickly as possible.