Brussels, 03/10/2000 (Agence Europe) - The European Commission has decided to open a detailed investigation concerning the proposed transaction whereby Electricité de France (EDF) and Zweckverband Oberschwäbische Elektrizitätswerke (OEW), Germany, acquire joint control of Energie Baden-Württemberg (EnBW). Fully held by the French state, EDF's main activities are generation, transmission, distribution and supply of electricity in France. It holds stakes in the electricity companies of several European countries. OEW, an association grouping nine public districts in south-western Germany, mainly aims to acquire stakes in companies of the energy sector. The two partners intend to acquire joint control of EnBW, a vertically integrated electricity company active in various electricity sectors, mainly in south-western Germany.
On the basis of information available to date from the inquiry, the Commission considers that the first effects of the merger will be felt on the French market as EDF holds a monopoly in the provision of electricity to end-users. According to the latest French legislative provisions introduced in 2000 in order to fulfil the requirements of the European directive aimed at liberalising the European electricity markets, the industrial electricity users that consume over 16 GWh/year (per site) may choose their supplier. EnBW, whose supply sector is located near the French-German border could be considered as a potential competitor on the French market. The Commission, therefore, has serious doubts about the compatibility of the operation with the common market in so far as the transaction could lead to the elimination of a potential competitor in France. Furthermore, the Commission fears closure effects of the French market that could be exercised by commonly held participations of EDF and EnBW in Swiss electricity operators which could enter the French market.