German utility Eon and compatriot RWE have agreed to carve up the assets from the latter's renewables company Innogy.
Under the complex deal, RWE will end up controlling the renewable generation assets of both Eon and RWE.
For its part, Eon will emerge with the retail and network businesses of Innogy, and will also acquire the same unit from RWE.
The agreement foresees Eon acquiring the entire 76.8% stake in Innogy from RWE. In return, RWE will receive 16.7% of Eon’s equity.
The transaction is slated to be enacted in several steps and is subject to regulatory and board approvals.