Market Consolidation

Taking a bite out of E.ON

  • Why it matters

    Why it matters

    As Germany and other countries turn away from coal and gas-fired energy plants and increasingly rely on wind and solar energy, there’s the potential for slew of mergers and acquisitions in the industry.

  • Facts


    • Analysts and industry heavyweights say an era of mergers and acquisitions has begun in the European energy sector.
    • Having nuclear power in its portfolio could make Eon less attractive for acquisition as Germany continues its turn away from nuclear energy.
    • Uniper CEO Klaus Schäfer is hoping to re-position conventional energy providers as guarantors of energy security in times when weather inconsistencies might make wind or solar energy unreliable.
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MOBI 10.8.-Eon-Ruhrgas Zentrale
E.ON begins to look good value. Source: DPA.

Utility giant E.ON and its spinoff Uniper are both fast becoming attractive acquisition targets in the fast consolidating European energy market.

Both E.ON and its main RWE were forced to restructure after Germany decided to transition away from fossil fuels altogether and towards renewable energy sources in a policy known as the Energiewende and the process has put the entire sector up for grabs.

E.ON itself split off its old coal and gas business into a new company, Uniper, and put the first 53.35 percent on the stock market. The company will have to keep the rest for tax reasons through the end of the year and its chief executive Johannes Teyssen hopes to quickly offload the rest.

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