E.ON has reached an agreement in principle to acquire RWE’s 76.8% stake in German rival Innogy via a wide-ranging exchange of assets and shareholdings that would create one of Europe’s biggest renewables operations under RWE.

After the transaction – which still needs to be approved by antitrust authorities – the renewables businesses of E.ON and RWE would be brought together under the umbrella of RWE, while E.ON