German power giant RWE to spin off renewables business

German power giant RWE, hit hard by government plans to phase out nuclear power and fossil fuels, announced plans Tuesday to spin off its renewables, grids and retail operations and take the unit public.

Bigger rival E.ON is similarly splitting its conventional and renewable energies operations into separate entities.

The aim was to "create a platform for growth with its own access to the capital market. This will strengthen the viability of the group as a whole. The new subsidiary will be listed on the stock market probably in late 2016," RWE said in a statement.