EON to Acquire RWE’s Innogy, Transforming German Energy Industry

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.

In a complex deal involving shares and asset swaps, 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. An announcement came early March 11 after Bloomberg News reported that the companies were in advanced talks, citing people familiar with the matter.

The deal, which values Innogy at about 22 billion euros ($27.1 ...