RWE finalises transaction with E.ON – project Tailwind completed!
This is the day we have been working towards for two years. The new RWE has been completed. It is a new, bigger and more diverse company, with a clear goal. By 2040, we will be carbon neutral. This will take us far beyond what other companies are aiming for. Rolf Martin Schmitz, position at the time CEO of RWE AG
What Ralf Martin Schmitz was talking about is the Tailwind project in which hundreds of colleagues at RWE, E.ON Climate and Renewables (EC&R) and Innogy prepared the integration of the renewable energy businesses of EC&R and Innogy. On July 1 2020, the transaction with E.ON was finally completed and with it the project itself. This concludes the largest transaction in German industrial history to this day.
It was a big reorganization of business divisions between the companies: As part of the transaction E.ON acquired RWE’s 76.8 percent stake in Innogy. In exchange, E.ON and Innogy’s renewable electricity generation were integrated into the RWE Group, as well as the gas storage business run by Innogy until then. RWE also received the minority stake in the Austrian utility Kelag as well as the minority stakes in the Lingen/Emsland and Gundremmingen nuclear power stations held by E.ON, as well as a 16.7 percent shareholding in E.ON. For this RWE paid E.ON 1.5 billion euros.
With the conclusion of the transaction in 2020, RWE’s portfolio grew to include all wind, solar and hydropower businesses from Innogy as well as biomass, biogas and gas storage activities. It was a big addition to our business and with it RWE took a major step forward in the Renewable business. This marked the beginning of the RWE, that we are today.
With the transaction completed RWE became the third biggest renewables player in Europe and number two with regards to offshore wind. And we were also able to expand our global presence with locations on 4 continents and in 40 countries. Moreover, our RWE employee family grew: In the course of the takeover, RWE has also welcomed about 2,700 new employees from Innogy, who transferred.
We have a wonderful starting point: a huge worldwide renewables portfolio, two teams that complement each other perfectly with many years of experience, and a strong investment programme. This will enable us to strengthen our leading position in the market even further Markus Krebber, CEO of RWE AG, position at the time CFO of RWE AG
With this, our #TEAMRWE made a big addition. We became a new, bigger and more diverse RWE with our goal to be carbon neutral by 2040. Our common purpose united us throughout the Group and still does to this day:
Our energy for a sustainable life.
Two years, three months, 19 days: that is how long the project lasted. And a lot happened on the journey. But see for yourself:
You can read the corresponding press release here.
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