Eon: First the EU, then the speculators

Eon wants to take over the RWE subsidiary Innogy, and the largest electricity supplier in Germany to rise. But the path to the goal is stonier than I thought.

Lothar Gries, boerse.ARD.de

Since months the planned Takeover of Innogy been subject to intense scrutiny by the EU Commission. However, the authority needs more time. At the end of last week, she informed that the investigations up to 23. August continued to be. The originally projected date of the 23. July.

Brussels officials fear a restriction of competition. Already in March, they had expressed concerns, "that the remainder of the competition would not be sufficient pressure to restrict the market power of the newly emerging company and price increases for consumers".

parts are already approved

Eon boss Johannes Teyssen

in fact, would upgrade Eon to the Innogy Acquisition of the largest electricity supplier in Germany with more than twelve million customers. A further 2.1 million customers, would supply the group with Gas and in many places the distribution networks operate. In Europe, Eon would then have 50 million customers. Therefore, competitors and consumer advocates fear the competition. The EU Commission is therefore examining whether the current customer price threaten increases.

A part of the deal, the competition authorities have waved through. So, RWE has permission to participate in Eon - planned to be 17 percent and for the Adoption of renewable energies. Also, the Acquisition of Innogy networks by Eon applies to the evaluation of antitrust law of learning as a largely unproblematic, since this is a business that is controlled by the Federal network Agency.

concerns in the distribution

the Commission could stop the Deal in its entirety, as in the case of the planned merger of Thyssenkrupp, Tata, experts believe that's highly unlikely. Rather, it is expected that the transaction is hereby approved, subject to conditions. Eon is, as usual in such cases, in some areas or countries, such as Slovakia, of businesses.

However, Eon sees the proposed Acquisition of competitors Innogy in the schedule. At the time of submission of the quarterly figures on Monday, the group was confident to receive the necessary permits "in the second half of the year".

ARD-Börse: Eon hopes the Acquisition of Innogy

13.05.2019 11:36 PM

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5,000 jobs way

Eon is hoping that the Acquisition and subsequent merger of Innogy, a new impact force will fall. The expected synergies estimated by the top management to Johannes Teyssen to 600 up to 800 million euros in the year. This goal can only be achieved if Innogy is fully merged with Eon. A total of 5,000 jobs will be eliminated.

Additional course Additional course information to Eon

information about Innogy

this project without obstacles by dragging, the rest of the Innogy shareholders by Squeeze-out from the company pushed. This is according to the law, only 90 percent are possible. 76.8 percent of the shares received by Eon RWE already and its share since then to just under 90 percent extended.

have to pay Eon?

get rid of the minority shareholders will have to rely Eon may be deeper in the bag. The hedge funds that are after got known to the purchasing plans in the case of Innogy, and now to a severance payment speculate know. The beginning of March 2018 unveiled plans according to Innogy has been rated with 22 billion euros, which corresponded to just under 37 Euro for each Innogy share.

Since then, the price has continued to rise - at times, the papers were almost 42 Euro value. Eon's chief financial officer, Marc Spieker has rejected the hopes of the remaining shareholders at a price premium, although - "From us there will be no increase in the offer in the future" - but the Innogy-share continues to be over the threshold of 40 Euro.

Innogy Headquarters in Essen

in Addition, Eon could merge without Exceeding the 90 percent threshold of the business of Innogy. The remaining Innogy shareholders would shareholders minority of Eon. However, such a step is considered to be time-consuming and risky, because the investor could file a complaint about it.

Many of the questions on the HV

First of all, however, it is important to get the green light from the EU Commission. The Acquisition, expected synergies, is expected to be able to realize Eon but only in the medium term. The company itself expects only from 2022.

so it is No wonder, if the top management of Eon to Johannes Teyssen at tomorrow's annual General meeting in Essen will be many questions with regard to the Acquisition of Innogy and its facilities.

source: boerse.ard.de