E.ON: Innogy concessions hurt profit outlook

Tuesday, 17. September 2019 12:51

RWE AG, which is becoming the biggest shareholder with 16.7%, is about to get a seat at the Supervisory Board of E.ON SE. The Essen-based power producer's chief executive Johannes Teyssen said on Tuesday, after the European Commission approved the asset swap between the two energy giants centered on Innogy, that remedies the regulators accepted were "tolerable" compared to the upside. However, he acknowledged the impact on E.ON's earnings, in "very low triple-digit millions of euros."

The transfer of RWE's majority stake in the subsidiary will be executed tomorrow, the CEO added. E.ON will hold 90% of Innogy in total following the transactions, he revealed. Teyssen said the target for synergies remains at €600 million to €800 million starting in 2022 and that less than 7% of the workforce or up to 5,000 positions would be cut.

Related Links: innogy SEE.ON SE
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