E.ON SE plans to swiftly integrate innogy SE into the company through a "merger squeeze-out" once it gets approval from the European Commission. The deal is part of a multibillion-euro asset swap between E.ON and RWE AG.
"This procedure ... provided for in company law applicable from a shareholding of 90%, allows us to implement the integration plans, which have been developed together with innogy during the last months, as swiftly as possible," said E.ON CEO Johannes Teyssen in a Sept. 4 statement.
E.ON has already acquired 3.8% of innogy shares through the stock market. It will reach the 90% threshold by obtaining RWE's 76.8% majority stake and another 9.4% shares from a voluntary public takeover in exchange for adequate cash compensation.
This will result in innogy being merged into E.ON Verwaltungs SE, excluding the remaining minority innogy shareholdings. The precise amount of the cash compensation is being determined by an audit company, E.ON said.
An extraordinary general meeting of innogy will be convened to adopt a resolution approving the share transfer, following the completion of the aforementioned transactions.
E.ON has already secured approvals from Germany and the U.K. in relation to the individual steps. It expects clearance from the European Commission this month.
