German energy firms in bid to halt E.on-RWE deal

Eleven German municipal and regional energy companies have filed legal action with the European Court of Justice (ECJ) to stop the proposed merger of RWE and E.on.

RWE increased its renewables portfolio to more than 9GW by combining the assets of E.on and Innogy

E.on acquired the networks and sales division of RWE, which in turn took over E.on and Innogy鈥檚 renewables assets, boosting its portfolio to more than 9GW, under an聽asset swap听诲别补濒.

It was approved by the European Commission and German competition regulator in September 2019 and will be finalised when it is listed in the German commercial register.

RWE told 搖錢樹娛樂城 this was expected in the coming months, and that it did not believe the transaction would be reversed as a result of the filing to the ECJ.

The 11 energy companies claim the merger will significantly restrict competition in electricity generation and marketing in Europe and Germany.

They argue that RWE and E.on dividing functions of the energy market between them and then avoiding competition between one another means the companies will gain an unfair advantage.

In a joint statement they claimed the deal was 鈥渃learing the way for two national champions at the expense of medium-sized companies鈥.

Thomas Banning, CEO of Naturstrom 鈥 one of the signatories 鈥 added: 鈥淟ike us, others are successful with decentralised and regenerative concepts in the energy market and it is becoming increasingly clear that the business models of RWE and E.on will no longer work.聽

鈥淪o they use their existing political and economic power to secure their benefices by reorganising the market.鈥

RWE told 搖錢樹娛樂城聽it does 鈥渘ot share the plaintiffs' assessment鈥 and is 鈥渃onvinced that the clearance decision will continue to exist鈥.聽

An E.on spokesman added: 鈥淚n general, we consider the cartel approval to be a rock-solid one because, in our view, the clearance was granted by the European Commission after a very careful and correspondingly lengthy and intensive procedure.聽

鈥淒uring this procedure, all parties concerned had the opportunity to submit comments and were sufficiently heard.鈥