Brussels, 27/08/2003 (Agence Europe) - The European Commission has authorised Electricité de France (EDF) to buy Louis Dreyfus's holding in their joint subsidiary EDF Trading. As a result of the transaction, EDF will control 100% of the capital of EDF Trading. EDF is the historic electricity supplier in France. It is wholly owned by the French state and is in business in all areas of the electricity industry from production to retail marketing. Apart from France, it operates in a number of countries in Europe (Benelux, Germany, Italy, Sweden and United Kingdom) and elsewhere. EDF Trading's main business is trading in energy products, in particular electricity.
The Commission noted that the fact that EDF Trading is now attached to a major European electricity supplier is offset by the fact that there are many other dealers in similar situations. The Commission considered whether EDF's acquisition of exclusive control of EDF Trading might have the effect of eliminating a supplier for eligible French or European customers and thereby of reinforcing EDF's position on the electricity supply market in relation to them. It concluded that it would not have this effect as prior to the transaction there was no competition between EDF and EDF Trading. Under the agreements concluded between EDF and EDF Trading when the latter firm was formed, EDF Trading does not compete with EDF for the supply of electricity to eligible final consumers in Europe (including France), and EDF does not compete with EDF Trading for the supply of electricity to eligible resellers in Europe (including France). The Commission also considered the potential effects on electricity production if EDF Trading decided to acquire electricity supplies exclusively from EDF. It concluded that a decision to do so, which would effectively convert EDF Trading into a mere distributor of electricity produced by EDF, would not be in EDF's interest as EDF is quite capable of marketing its electricity on its own. Lastly, the Commission considered the effects on the electricity transport market if EDF Trading decided to favour the French network over other European networks, but under French law and EU legislation, which put electricity supply networks under separate management, revenue from the use of the French network cannot accrue to EDF.