The company has created a new business Uniper to hold its conventional power generation assets including hydropower, natural gas and coal, as well as its global energy trading operations.
Consequently, E.on will focus on renewables, energy networks and customer solutions.
Uniper spinoff is expected to take place in the second half of this year, upon receiving shareholder approval.
Upon completion of the spinoff, E.on will divest a majority stake in Uniper and list its shares on the stock market. The remaining stake for the company is expected to be sold over the medium term.
The plans for the separation were announced in November 2014 to counter a sector crisis which had affected E.on’s profits and pushed down the shares prices of the company, Reuters reported.
E.on CEO Johannes Teyssen said: "This liberates us from continually having to make compromises.
"Our ambition is for both companies, which soon will be legally independent of one another, to become leading players in their respective energy worlds.
"Separating these businesses, which were formerly managed together, will make both companies more agile and sharpen their profile for customers and investors."
Uniper presently has a balanced generation portfolio comprising around 40GW of dispatchable capacity.
