The European Commission has approved German company RWE’s takeover of the renewables business of compatriot Eon.
Officials in Brussels said the acquisition, which is part of a broader more complex deal involving RWE subsidiary Innogy, does not raise any competition concerns.
“The two companies are engaged in a complex asset swap. Following this asset swap, RWE will be primarily active in upstream electricity generation and wholesale markets, whereas Eon will focus on the distribution and retail of electricity and gas,” said the commission.
The commission received feedback from a “large number of competitors and customers” during its investigation.
As part of the deal, RWE will also acquire the majority of Eon’s nuclear asses and a 16.7% minority stake in the German utility as “part payment” for a swap of assets in the other direction.
Eon’s acquisition of RWE’s distribution and retail business is being assessed separately by the Commission and is still under review.