E.On in Germany has reached an agreement in principle to acquire RWE’s 76.8% stake in  Innogy. In return, RWE will gain a 16.67% share in E.On.

The complex deal, in which E.On will offer €36.76 per share plus dividends of €3.24 per share, involves major restructuring of the two companies’ activities.

E.On will become a “focused customer-oriented energy company concentrating on energy networks and customer solutions”.

The deal will see RWE take on most of the generation businesses. E.On will transfer Innogy’s renewables and gas storage businesses to RWE. RWE will also take on minority interests currently held by E.On’s subsidiary PreussenElektra in two German nuclear power plants. 

E.On recently reached agreement to sell its stake in Uniper, the generation business business previously spun out of the company that included fossil, hydro and nuclear generation.