E.On Makes Management Changes

German utility E.ON said May 9 it has appointed Leonhard Birnbaum to oversee completion of its deal agreement with RWE and to prepare for E.ON’s takeover of Innogy.

Thomas Konig will replace Birnbaum to take over E.ON’s network business. Since 2011, Konig had already overseen the reorganisation of E.ON's sales and network businesses in Germany. In July 2012, E.ON completed the sale of its main gas transmission business, Open Grid Europe, to a consortium of funds headed by Macquarie.

Birnbaum also headed up E.ON’s renewables business and will continue to do so until they are transferred to RWE under the aforementioned deal. He has been on E.ON’s management board since 2013.

Two months ago E.ON and rival RWE agreed a deal whereby E.ON will acquire RWE’s 76.8% stake in Innogy as part of an extensive asset swap, including RWE getting a 16.67% stake in E.ON. Subject to the usual antitrust approvals, the deals are expected to be finalised around mid-2019. However, Innogy has asked its shareholders to “refrain from taking any action” and to not sell their shares.