E.ON and innogy integration planning making good progress
- First major decisions made regarding the planned integration of innogy into E.ON and the new company’s intended future organisation
- New company to be called E.ON
- E.ON and innogy’s regional suppliers to retain their structure
- Organisational setup will remain customer-centric and be even more innovative
E.ON and innogy have made the first major decisions regarding the plans for E.ON’s future brand, organisational setup, and innovation activities. These decisions are to be implemented after the closing of the transaction, which is subject to the approval of the relevant antitrust and regulatory authorities.
The new company will retain the name E.ON and benefit from the strengths of innogy’s corporate culture. The integration planning team is exploring how to further enhance E.ON’s corporate and employer brand, including by drawing on innogy’s positive experiences. In addition, a detailed brand architecture is being elaborated.
The structures of E.ON´s German regional suppliers and innogy´s German regional companies are to be retained. A structure comparable to E.ON's regional utilities is to be established in innogy's core supply area. For this purpose, innogy’s concessions business, Westnetz, its shareholdings in municipal utilities, and its cooperations with municipalities will be integrated. The objective is for operating units to continue to have as much room for manoeuvre and to be as close to customers as possible. This is why the corporate headquarters will be set up to primarily focus on key management tasks.
The new E.ON wants to make an important contribution to the success of the energy transition and to climate protection in Europe. For this purpose, it will further enhance its innovative strength. It therefore intends to establish an innovation team at corporate headquarters that reports to the CEO and that works across the company’s product ranges and markets.
In addition, E.ON and innogy have completed an initial validation of the previously identified EUR 600 to EUR 800 million in synergy potential starting from 2022 onwards. The entire planned integration will be carried out in a socially responsible manner, in keeping with the strong tradition of the companies involved. For this reason, innogy, E.ON and RWE, in consultation with their Group Works Councils, reached an Agreement in Principle on Collective Bargaining for Germany with the unions ver.di and IGBCE in May.
Uwe Tigges, CEO of innogy SE: “The first joint decisions with E.ON regarding integration planning are the result of an open and constructive dialogue. I’m confident that innogy’s strengths will live on in the new company.”
E.ON CEO Johannes Teyssen: “We’re very satisfied with the initial results of our joint integration planning. After the successful closing of the transaction, these decisions will enable us to ensure that the new E.ON is resolutely customer-centric and innovative.”
The transaction continues to be subject to the approval of the relevant antitrust and regulatory authorities. E.ON and innogy will remain independent companies until the transaction closes.
This document contains forward-looking statements. These statements are based on the current views, expectations, assumptions and information of the management, and are based on information currently available to the management. Forward-looking statements shall not be construed as a promise for the materialisation of future results and developments and involve known and unknown risks and uncertainties. Actual results, performance or events may differ materially from those described in such statements due to, among other things, changes in the general economic and competitive environment, risks associated with capital markets, currency exchange rate fluctuations, changes in international and national laws and regulations, in particular with respect to tax laws and regulations, affecting the Company, and other factors. Neither the Company nor any of its affiliates assumes any obligations to update any forward-looking statements.