Clearance for Acquisition by RWE of E.Ons Renewable and Nuclear Electricity Generation Assets

RWE and E.ON are both energy companies based in Germany and the two companies are engaged in a complex asset swap. Upon completion of the transaction, RWE will be primarily active in upstream electricity generation and wholesale markets, while E.ON will focus on the distribution and retail of electricity and gas. For this, it is stated that RWE would acquire the majority of E.ON's renewable and nuclear generation assets.

According to the European Commission’s press release, the Commission assessed the impact of the transaction on the generation and wholesale supply of electricity. It was stated that the Commission focused on Germany in its assessment, the main country where the activities of RWE and E.ON's electricity generation assets overlap. The Commission stated that E.ON's acquisition of RWE's distribution and retail business is being assessed separately and that it is still under review.

The Commission determined that according to the EU Merger Regulation the transaction is unlikely to hinder effective competition in the generation and wholesale supply of electricity, unlikely to affect RWE's ability and incentives to influence market prices and that RWE would continue facing effective competition after the transaction on the markets for generation and wholesale supply of electricity.

Further details are at http://europa.eu/rapid/press-release_IP-19-1432_en.htm