February 21 (Renewables Now) - The European Commission is expected to approve German utility RWE AG's (ETR:RWE) planned purchase of the renewable energy businesses of E.on (ETR:EOAN) and Innogy (ETR:IGY), Reuters reported Thursday, citing people familiar with the matter.
The clearance is likely to come without conditions, according to the report.
The acquisition is part of the major asset swap deal signed between E.on and RWE in March 2018. Under the terms of that agreement, RWE will get the renewable energy businesses of both Innogy and E.on as well as E.on’s minority interests in the Emsland and Gundremmingen nuclear power stations operated by RWE.
The acquisition also includes Innogy’s gas storage business and its stake in the Austrian power utility Kelag. At the same time, RWE will acquire a 16.7% equity interest in E.on, upon British and German antitrust approval.
The deal was filed for approval with the EU at the end of January and its closing is expected in the second half of 2019.
The European Commission will finish its preliminary review of E.on's takeover of Innogy on March 7. It has reportedly sent out questionnaires to E.on's rivals to assess the effects on competition and prices the takeover will have.
Following completion, the commission can clear the merger with or without concessions or open a four-month investigation in case of serious concerns about the consequences of the takeover.