Germany's E.ON set for major reorganization: report

7th November 2010, Comments 0 comments

Germany's leading energy company E.ON is poised to announce a major reorganization that could see it shedding some of its least profitable sectors, Spiegel magazine reported.

Over the next two or three years, E.ON head Johannes Teyssen wants to sell or open to partnerships less lucrative areas of the company, Spiegel said, citing company sources, in its edition to appear Monday.

That may include selling its E.ON Ruhrgas division that sells natural gas to some 15 million consumers in Germany.

E.ON is expected to announce its detailed quarterly results on Wednesday.

Among other changes, the group is expected to partly disengage from some of its European operations in order to develop new markets such as China and Brazil, the magazine said.

E.ON recently announced it would book charges worth 2.6 billion euros (3.6 billion dollars) for devalued assets in France, Italy and Spain.

The assets were bought by EON for 11.8 billion euros after the Spanish group Endesa was acquired by the Spanish-Italian consortium Acciona-Enel

© 2010 AFP

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