Brussels, 08/09/2005 (Agence Europe) - On Thursday, the European Commission authorised the joint acquisition of up to 51% of the Belgian electricity producer, SPE (Société publique d'éléctricité), by the French company Gaz de France and British energy distributor, Centrica. Acquisition would be through the creation of a joint subsidiary, Segebel, held equally by the two groups. The remaining 49% of SPE will remain in the hands of the current SPE shareholders, as well as Publilum, a Belgian holding company of 104 shareholder municipalities, and ALG (Association liégeoise de gaz).
The agreement between the French and British groups stipulates, moreover, that two other Belgian gas and electricity suppliers, Luminus (hitherto controlled by Centrica), and ALG Négoce (under GDF control), will be bought up by SPE with securities. The Commission also authorises these two other operations.
SPE is the second largest electricity producer in Belgium, after Electrabel, with a market share of nearly 10% and electricity generating stations fuelled mostly with natural gas.
“The market investigation has confirmed that the operation will create a stronger second-ranked competitor in all the electricity and gas supply markets concerned” alongside Electrabel, which enjoys almost a monopoly in Belgium, the Commission explains, nonetheless saying that the new entity will hold a far smaller place that the traditional companies (Distrigas and Electrabel) on these markets in Belgium. Also “alternative suppliers are present on all the markets concerned” (for example Essent, EdF, Nuon, RWE Solutions, for electricity, and Wingas, BP and Power, Nuon and Essent for gas). As a consequence, the Commission concludes, the operation “does not therefore raise concerns” on any electricity or gas supply market in Belgium.