- Title: E.ON welcomes EC decission on Innogy asset-swap with RWE
- Date: 17th September 2019
- Summary: ESSEN, GERMANY (SEPTEMBER 17, 2019) (REUTERS) ***WARNING CONTAINS FLASH PHOTOGRAPHY*** NEWS CONFERENCE IN PROGRESS E.ON CHIEF EXECUTIVE JOHANNES TEYSSEN SPEAKING CAMERAS SOUNDBITE (German) E.ON CHIEF EXECUTIVE JOHANNES TEYSSEN, SAYING: "The biggest concession we had to make was the sale of our gas and energy business in the Czech Republic. Over one million customers, a really good business in an interesting environment in an interesting country, a good team and solid profit. But we had a position in that market that required discussions. And we also have to sell the smaller part of our business in Hungary - the energy retail business." VARIOUS OF TEYSSEN SPEAKING SOUNDBITE (German) E.ON CHIEF EXECUTIVE JOHANNES TEYSSEN, SAYING: "Altogether we are talking about roughly two million customers we are giving up. And a turnover of about two billion euros. And a loss of profit in the lower three digit million euro range. Just to give you an idea: about three quarters of that profit came from the Czech Republic."
- Embargoed: 1st October 2019 12:36
- Keywords: E.ON Chief Executive Johannes Teyssen EU antitrust regulators cleared E.ON's purchase rival Innogy
- Location: ESSEN, GERMANY
- City: ESSEN, GERMANY
- Country: Germany
- Topics: Company News Markets,Economic Events
- Reuters ID: LVA001AX1QY6L
- Aspect Ratio: 16:9
- Story Text: The European Commission (EC) on Tuesday gave the green light to the final part of the planned EUR-40-billion-plus (USD 44 bn.) asset swap between German energy groups RWE AG and E.on SE.
Once the whole transaction is completed, E.on will focus on the distribution and retail supply of electricity and gas, and RWE will be mainly engaged in upstream electricity generation and wholesale markets.
The regulator allowed E.on to acquire RWE's 76.8% stake in Innogy SE on the condition that the buyer exits certain businesses, including Innogy's electricity and gas retail business in the Czech Republic, and a portion of E.on's electricity retail business in Hungary. In Germany, E.on will need to part with most of its customers supplied with heating electricity and discontinue the operation of 34 electric vehicle (EV) charging stations on motorways, which will be operated by a new third-party supplier in the future.
"We would have liked to continue these businesses, but we are committed to carry out the measures agreed with the European Commission," said E.on CEO Johannes Teyssen, referring to the concessions as "tolerable."
The EC has concluded that the modified transaction would not raise competition concerns.
(Production: David Sahl, Stephan Schepers)
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