German utility giants to carve up assets from renewables firm Innogy

German utility giants Eon and RWE have agreed a complex asset swap involving the latter’s renewable energy company Innogy, in a major shake-up to the national energy industry.

The €43 billion deal, nicknamed ‘live wire’ will see RWE take control of the renewable energy assets of Eon and take a 16.7% stake in Eon, while maintaining ownership of its own renewable assets from the Innogy brand.

In return Eon will purchase a 76.8% stake in Innogy and assume control of Innogy’s retail and network businesses, along with the same unit from RWE.

With its new renewable energy assets RWE, previously reliant on coal and gas-fired plants, is set to become a leader in the shift away from fossil fuels and towards clean energy in Germany.

The German energy sector has been in a state of flux since Chancellor Angela Merkel’s decision to phase out nuclear power following the Japanese Fukushima disaster in 2011, with this deal set to further alter the make-up of the industry.