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Image header Agence Europe
Europe Daily Bulletin No. 9244
Contents Publication in full By article 12 / 18
GENERAL NEWS / (eu) eu/competition

Commission examines conditions imposed by Spanish energy regulator on E.ON-Endesa merger

Brussels, 01/08/2006 (Agence Europe) - Last weekend, Spain communicated to the European Commission information relating to the proposed merger between E.ON and Endesa. The decision by Spain's national energy authority (CNE) is 400 pages long and gives details of the conditions imposed on the German firm if it wishes to complete its hostile takeover operation (the transfer of assets in the nuclear field, in particular). At the end of April, the Commission had approved the merger project, which amounts to €26.9 billion (EUROPE 9179). Concerned about the conditions imposed for this operation, the Commission had reminded Madrid of its overriding authority regarding Community dimension mergers. Any measure affecting an operation for which the European Commission has authority, must be notified to the Commission, which then verifies whether these measures correspond to public interest objectives and whether they are proportionate and in line with EU legislation (Article 21 of the merger regulation). Although information communicated by Madrid does not constitute a formal notification, the Commission began its analysis immediately. In a release diffused on Monday evening, the Commission states that the Spanish authorities should have notified before the decision of the CNE became effective.