E.ON Sheds Czech Power, Gas Assets

German power group E.ON announced on July 12 it had sold the Czech electricity and gas retail business of its newly-acquired Innogy division to Hungary's MVM.

The European Commission (EC) approved E.ON's purchase of Innogy from fellow German energy firm RWE in September last year, on condition that it divest the company's retail power and gas operations in the Czech Republic, as well as part of its retail electricity business in Hungary and other assets in Germany.

"This transaction marks the final step in the fulfilment of the remedies offered by E.ON in the context of the antitrust approval of E.ON's takeover of Innogy," E.ON said in a statement.

E.ON agreed to divest its German heating power business to LichtBlick in March, and its Hungarian power retailer subsidiary to Spain's Audax Renovables earlier this month.

Innogy supplies 1.2mn gas customers and 0.4mn electricity users in the Czech Republic. The transfer of the business to state-owned MVM will need approval from the EC, and is expected to close before the end of the year. E.ON did not disclose the sale price.