July 19 (Renewables Now) - Innogy SE (ETR:IGY) has agreed to support the swift implementation of the planned transactions with E.on SE (ETR:EOAN) and RWE AG (ETR:RWE), having secured the fair treatment of its employees.
E.on and RWE agreed in March a complex transaction that includes E.on’s planned purchase of RWE’s 76.79% stake in Innogy, and RWE’s acquisition of E.on’s major renewable energy operations and Innogy’s own renewables business. In addition, RWE will get a 16.67% minority stake in E.on.
Innogy said on Wednesday that it has inked legally binding agreements with each of E.on and RWE to execute the transactions in a transparent process that treats all employees, regardless of which company they currently work for, fairly and as equally as possible.
The German renewables-focused utility was initially reticent to support the plan as it feared that the suitor may unilaterally pursue job cuts to the disadvantage of Innogy staff. Under an agreement reached in May with certain unions, compulsory redundancies for operational reasons are virtually ruled out in this transaction, Innogy noted.
In addition to protecting current Innogy employees, the newly-signed deals define the organisation and processes for the respective integration planning and sets the principles and selection process steps to fill top leadership positions. It was noted in the announcement that E.on’s new leadership team will be unveiled in 2019 at the earliest.
Meanwhile, E.on’s voluntary public takeover offer for minorities in Innogy is still active, with the additional acceptance period ending on July 25, 2018. The transaction is still pending approvals from the relevant regulatory authorities.
“Our agreement with innogy ensures innogy’s support in obtaining timely regulatory approvals and a swift integration after the transaction closes,” commented Johannes Teyssen, CEO of E.on.