Brussels, 05/02/2003 (Agence Europe) - Following a one month preliminary investigation, the European Commission has decided to open an in-depth investigation into the creation of two joint venture by the Austrian groups Österreichische Elektrizitätswirtschafts-Aktiengesellschaft (commonly known as Verbund) and EnergieAllianz Austria. The aim is to regroup within these new companies the activities of the two groups in terms of the provision and trading of electricity to industrial clients whose annual consumption exceeds 4GwH. Given the size of the parties in the sector, the Commission is concerned over this merger of activities that could create a dominant position in several electricity markets in Austria. In fact, Verbund is the main Austrian producer who furnishes roughly half the country's needs. It is also present in terms of transmission, distribution, supply and trading, and participates in the interconnection network in the centre and east of the country, or a presence in seven of the nine Austrian Lander. As for EnergieAllianz, it is a joint venture between five regional Austrian distributors also suppliers of electricity. This concerns EVN AG, Wien Energie, Energie AG Oberösterreich, Burgenländische Elektrizitätswirtschafts-Aktiengesellschaft and Linz AG für Energie, Telekommunikation, Verkehr und Kommunale Dienste. The effect of the transaction would be the creation of a major concentration at the electricity supply and provision level, combining the activities in this area of the country's largest producer and five of its regional distributors. The industrial clientele of these various entities would then rely on two single distribution channels that would enter into competition with only five other regional distributors of which three ( those of Corinthian, Salzburg and Styrie) would heavily rely on the new entities in terms of electricity provision and would thus not be capable of acting as independent competitors. On the other hand, Verbund and one of the members of Energie Allianz have stakes in these regional actors, which would provide them with the opportunity the exercise a certain degree of influence upon them. Given these elements, the Commission fears the negative effects of this operation on the price of electricity in Austria and gives itself an additional four months to study the question.