May 7 (UPI) — German utility E.ON said it will build up its wind energy portfolio by taking over the domestic activities of wind-power company Vortex Energy.
E.ON said it’s targeting a takeover of the German activities of Vortex. E.ON takes 30 employees from the company, though non-German activities of Vortex are not part of the transaction.
Germany has one of the greener economies in Europe and E.ON said it was retooling in the domestic landscape as the country emerges as a regional leader in renewable energy development. Vortex has 300 megawatts of wind power development in its immediate portfolio and much more in early-stage development.
Both companies said the agreement is a win-win.
“Vortex Energy sees the acquisition by E.ON Climate & Renewables as the ideal opportunity to successfully realize its project pipeline in Germany and maintain sustainable growth,.” Till Jeske, the CEO of the Vortex Energy group, said in a statement.
E.ON in late April made its $6.3 billion share offer for rival Innogy final, putting the utility on its way to a leadership position in Europe.
Innogy was a spinoff from the larger energy group RWE. Plans were unveiled in March to divide up the company, giving RWE parts of its renewable segment and E.ON parts of the gas and power network.
The spinoff with E.ON will lead to thousands of job losses. For the Vortex deal, the companies said the agreement should provide a sense of relief for those on the payroll.
“For the employees of Vortex, the transaction provides future security and excellent prospects,” Jeske added.
No terms of the agreement were disclosed. The acquisition remains subject to approval from anti-trust authorities.