Germany’s E.ON is running away from its debts – the company’s new strategy

On 30 November 2014, the supervisory board of E.ON announced that a new strategy had been adopted. E.ON intends to base its operation on three pillars: renewable energy sources, distribution networks, and customer solutions. Wind and solar energy is the main direction E.ON will be developing in. Other areas of the company’s operation, i.e. conventional energy production (nuclear, coal and gas power plants), the trade in electricity, oil and gas, and also oil and gas production will be transferred to a separate, independent company. Most of the new company’s capital will be transferred to E.ON’s present shareholders, and the remaining part will be sold on the stock exchange to ensure funds to E.ON. The new company will take over E.ON’s operation on non-European markets (except Turkey). E.ON will retain its debts; and thus the new company will have a clear account. The split is planned to be effected in 2016. 20,000 out of the company’s present 60,000 employees will work for the new company. E.ON is the largest company in the German electric energy sector (8th in the world) and has been directly engaged in the implementation of strategic projects as part of Germany’s energy policy, such as the construction of Nord Stream and the Energiewende.