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Image header Agence Europe
Europe Daily Bulletin No. 9068
Contents Publication in full By article 19 / 39
GENERAL NEWS / (eu) eu/competition

Commission states it is not competent to rule on Endesa/Gas Natural merger - Decision lies with Spanish authorities

Brussels, 15/11/2005 (Agence Europe) - On Tuesday, the European Commission decided that the hostile takeover bid launched by Gas Natural, the largest gas group in Spain, for its fellow Spanish Endesa, did not come under its jurisdiction, given that the merger will not have sufficient implications for the Community market. It will therefore be up to the Spanish regulation authorities to take a decision on this plan. "Both Gas Natural and Endesa achieved at least 75% of their total turnover within the (European) Community in Spain, which represents over two-thirds of their turnover and therefore strips the operation of any 'Community dimension'", the Commission explains in a press release. It would only have been able to deal with the dossier if over a third of Endesa's European turnover had been achieved outside Spain. If it succeeds, the hostile takeover bid, which values Endesa at 22.5 billion EUR, would give rise to a new giant, with over 30 million clients in 11 countries, the world number three and number one in Spain and Latin America. Endesa, which is opposing its purchase by Gas Natural, tabled a complaint with the Commission. “We have assessed Endesa's complaint extremely carefully”, but in this case, the Commission has no jurisdiction, said the European Commissioner for Competition, Neelie Kroes.

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