Peter Terium took an ailing German utility,RWE, hived off its green energy business into a new company called Innogy and listed a chunk of it in October, raising €4.6bn in Frankfurt’s largest initial public offering since 2000. Mr Terium did not undertake one of the most radical corporate restructurings postwar Germany has seen on a whim. For years, the country’s utilities have been in dire straits, battered by its radical shift away from fossil fuels and nuclear power to renewables. The electricity RWE and its rival Eon produced from coal and natural gas has been squeezed out of the market by cheap, subsidised wind and solar, while a slump in wholesale power prices left many of their plants uneconomic. Eon and RWE both responded by splitting themselves in two. Eon pooled its polluting power plants and energy trading unit in a new company, Uniper, which listed in September. RWE went in the other direction. Innogy contains the cleaner, greener businesses — renewables, power grids and retail energy services — while the older, dirtier ones remain with RWE.
FT 18th Dec 2016 read more »