As part of antitrust agreements over the RWE/VEW alliance and the E.On venture, the newly merged Viag/Veba, the last month has seen HEW attempt to swap stocks with E.On. The stock swaps will allow E.On to focus on its energy interests and it is also rumoured to be in merger talks with French multi-utility Suez Lyonnaise des Eaux.
Under the terms of the deal, E.On will transfer its 49 per cent stake in Berlin utility Bewag to HEW, while in return it will receive 15.7 per cent of Sweden’s Sydkraft, almost 62 per cent in natural gas company Hein Gas Hamburger Gaswerke and a further a248 million in cash. The moves come while German energy prices continue to fall and E.On has been the first to announce plans for a series of job cuts and closures of some conventional generation stations.
Meanwhile RWE has also announced an accelerated restructuring programme in the face of the changing market. The company plans to create eight separate units that will include generation, transmission, distribution, trading, gas, lignite, services and environment. The programme will be effective from 1 October.
