Raue Advises City of Radevormwald on Remunicipalisation of Public Utilities

Raue advised the city of Radevormwald (North Rhine-Westphalia) on the complete remunicipalisation of its own public utilities in the course of the Eon/RWE deal. This was made possible by a so-called change-of-control clause, which could be drawn due to the takeover of Innogy by E.ON.

The city of Radevormwald had founded the municipal utility in 1893 as a municipal gasworks, in 1898 the drinking water supply was added and in 1998 the electricity grid. Since the liberalisation in 1998, the city has held 50.1 percent of the majority municipal company in the legal form of a limited liability company. Due to the change-of-control clause, the city was now able to buy back the remaining 49.9 percent from the Eon subsidiary Westenergie. In the course of the deal with RWE and a reorganisation of its activities, Westenergie had taken over all municipal utility shares from the RWE subsidiary Innogy.

In December 2019, the town council decided to buy back the shares in the municipal utility, which has now been completed. Raue advised the city of Radevormwald together with LBD Berlin on the repurchase of the of the municipal utility shares.

(25 January 2021)