E.on to get EU nod for Innogy deal - report

Onshore wind farm Wiedenfelder Höhe. Image by Innogy (innogy.com).

July 15 (Renewables Now) - German utility E.on (ETR:EOAN) is likely to receive the approval of the European Commission (EC) for its planned takeover of certain assets from domestic peer Innogy (ETR:IGY), thanks to the additional remedies it has offered, Reuters reported Friday citing sources.

The EU antitrust watchdog is to reach a decision on the matter by September 20.

In June, E.on offered additional concessions, including the divestment of parts of its electricity operations in Hungary and the sale of Innogy's Czech-based gas and power business, CEO Johannes Teyssen told Reuters. 

Additionally, it might give up the operation of 32 electric vehicle recharging stations in Germany and terminate contracts with some 260,000 heating customers.

The EC in March opened an in-depth probe into the transaction, saying that the deal may lead to higher prices for consumers, as the proposed takeover might reduce competition in retail markets for electricity and gas in some EU member states.

E.on is acquiring Innogy's distribution and consumer solutions business and certain electricity generation assets under a broad asset swap deal it agreed with RWE AG in March 2018. 

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