E.ON and RWE: To Swap or Not to Swap?

內容大綱
In 2018, the board of directors of the German utility company E.ON SE was presented with a deal for an asset swap with a major domestic competitor, RWE AG. The deal was meant to help the competitors cope with uncertainties and challenges caused by the ongoing transformation of the utility industry in Europe. In the proposed deal, a recently created RWE-spinoff, innogy SE, would be disassembled with the assets going to E.ON. Because RWE still held a 76.8 per cent stake in innogy, the transfer meant that E.ON could gain full control over innogy's assets. In exchange, RWE would gain a minority investment in E.ON and some other assets. A deal, if approved, would be a surprise to the stock market. Should E.ON's board approve it?
學習目標
This case is appropriate for a course in strategic management at undergraduate and postgraduate levels or for an elective on corporate governance or political economy. After working through the case and assignment questions, students will be able to<ul><li>understand strategic issues facing major players in the changing energy and utilities industries, and how firms need to respond to changing institutional conditions;</li><li>develop skills in appraising the benefits of a major corporate restructuring involving a strategic asset swap; and</li><li>appreciate the need to plan for effective integration mechanisms for a corporate merger to be successful.</li></ul>
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