Veba and Viag have won EC acceptance for their merger. Having agreed to some sales and open access to their power grids, the companies look to have avoided selling prized regional power distributors or any generation capacity. Open transmission at the Danish border and dropping transit fees for trading between Germany’s north and south zones have also been agreed. RWE and VEW are also expected to drop transit fees.
Veba/Viag will divest their 49 per cent stake in Vereinigte Energiewerke AG (Veag), 49 per cent in the Berlin-based utility Bewag, 20 per cent in VEW and 15 per cent in Hamburgische Electricitaets-Werke (HEW). Viag Veba will relaunch as E.ON.
Meanwhile, RWE and VEW have also reached agreement in principle with the Federal Cartel Office on the regulatory requirements for clearance of their merger. The implementation of the previously adopted reorganisation of the RWE Group is currently in full swing and is due to commence operations as early as 1 October. RWE will also divest its Veag stake and will acquire all the VEW shares of about 20 per cent held by the Viag group. The groups have also agreed to a seven year power purchase agreement with Veag. The Cartel Office is due to publish its decision on RWE VEW by 10 July.
Some analysts have speculated that the relatively easy time the mergers received at the hands of regulators may have helped discussions on the nuclear shutdown, see page 3.
