German utility company E.ON to drop conventional power business, focus on renewables

German utility company E.ON SE says it plans to spin off its nuclear, oil, coal and gas operations to focus on renewable energy and power distribution.

E.ON said in a statement late Sunday that the new strategy will see it quit conventional power generation, global energy trading, exploration and production.

The move comes against the backdrop of Germany's plan to shut down all nuclear plants by 2022 and ramp up power generation from renewable sources.

E.ON, which is struggling with massive debts, also says it expects to book a 4.5-billion euro ($5.62 billion) charge on its operations in southern Europe this year. The company says it will sell its businesses in Spain and Portugal to Australian investment firm Macquarie for 2.5 billion euros ($3.12 billion).