November 14, 2018 / 6:46 AM / a month ago

Germany's RWE says Innogy breakup deal on track

RWE logo in Essen, Germany, March 14, 2017. Reuters/Thilo Schmuelgen

FRANKFURT (Reuters) - German utility RWE (RWEG.DE) on Wednesday said a planned breakup of its networks and renewables unit Innogy (IGY.DE) was on track and that it still expects the landmark deal to receive EU clearance in mid-2019.

“It is envisaged that the entire transaction will be completed rapidly thereafter,” RWE said in a statement as it reported nine-month results that were in line with analyst expectations.

The complex transaction, partly a reversal of RWE’s step to spin off Innogy in 2016, will turn RWE into Europe’s third-largest renewable player after Spain’s Iberdrola (IBE.MC) and Italy’s Enel (ENEI.MI).

Its nine-month adjusted earnings before interest, tax, depreciation and amortization (EBITDA) fell 23.5 percent to 1.3 billion euros ($1.5 billion), in line with the average forecast in a Reuters poll of banks and brokerages.

The company, Germany’s largest electricity producer, confirmed it would pay an ordinary dividend of 0.70 euros per share for 2018, an increase of 40 percent on the previous year.

Reporting by Christoph Steitz; Editing by Arno Schuetze and Maria Sheahan

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