In a complex deal involving shares and asset swaps, EON SE agreed to acquire Innogy SE from German rival RWE AG, transforming the country’s energy industry as utilities grapple with the accelerating shift to renewables. EON SE will emerge with the retail and network businesses of both companies, while RWE will end up owning the combined renewable-generation businesses as well as a large stake in EON. The deal continues years of upheaval for competitors RWE and EON started by German Chancellor Angela Merkel’s move toward an economy powered by renewable energy instead of nuclear and fossil fuels. Once among the most stable profit contributors in Germany, the two utility giants were forced to take billions of euros in writedowns and break themselves up after German wholesale power prices tumbled. The deal takes three relatively small businesses and creates one of the largest grid and utility players in Europe and a pure generation company with a strong renewables portfolio. – Bloomberg

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