Brussels, 05/07/2007 (Agence Europe) - On 5 July, the European Commission approved the acquisition of sole control of Endesa S.A., a Spanish energy company mainly active in the electricity sector, by ENEL S.p.A., based in Italy, and Acciona S.A., based in Spain, through a public takeover bid. The Spanish authorities, however, announced the previous evening that they intended to submit this acquisition to conditions similar to those imposed on the unsuccessful takeover bid of Endesa by E.On from Germany. The Commission has previously pursued Spain for applying these conditions, which it deems do not comply with Community law (EUROPE 9332).
European jurisprudence awards the Commission sole competency for authorising cross-border mergers: approval from the Commission for the acquisition, estimated to be worth €42.5bn, should therefore constitute the end to this operation. The Spanish regulation, however, has submitted the merger to an additional approval procedure by the national authorities, Commisión Nacional de Energía (CNE). The CNE indicated in a press release on 4 July that it would not approve the merger unless there were certain conditions, such as the CNE's (a government agency) right of veto in certain management fields, the maintaining of the company's HQ in Spain and several commitments on investment and dividends.
Jonathan Todd, spokesman for the European commissioner for competition, confirmed that the Commission would scrupulously examine these conditions in order to verify their compliance, particularly with Article 27 of the regulation on mergers. Endesa, Acciona and Enel will, according to the Spanish Daily Cinco Días, be declaring their intention to oppose the CNE conditions, but the spokesperson for each of these companies indicated in the media that no decision had yet been taken in this respect. (cd)