E.ON, Germany’s biggest utility firm, has announced plans to split in two and spin off most of its power generation, energy trading and upstream businesses, The Guardian has reported.
E.ON said it wanted to focus on its renewable activities, regulated distribution networks and tailor-made energy efficiency services, citing “dramatically altered global energy markets, technical innovation and more diverse customer expectations”.
Germany’s power sector has been in turmoil following a prolonged period of weak demand, low wholesale prices and a surge in renewable energy sources that continue to replace gas- and coal-fired power plants.
It plans to prepare for the listing of the new company created by its breakup next year, after its 2016 annual general meeting.
The split will not be accompanied by job cuts, it said, adding that about 40,000 employees would remain with the parent group while the remaining 20,000 would join the new company.