Brussels, 16/06/2008 (Agence Europe) - On Monday 16 June 2008, a number of amendments were approved to the exclusive takeover bid for 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. The operation as notified to the Commission in July last year was approved that same month (EUROPE 9462) but all the changes to the takeover conditions required another authorisation from the Commission. This decision does not affect Commission proceedings against Spain over conditions imposed by the national regulator on the merger. Madrid is expected to provide a response to the Commission's reasoned opinion on Monday 16 June.
On 18 March 2008, Enel, E.ON and Acciona concluded an agreement amending that of 2007 on the sale of shares to E.ON. This new agreement excludes one of Endesa's electricity plants, which was going to be sold off to E.ON (the Foix plant in France) and replaces an electricity plant in Spain (Besós 3) with another electricity plant in Spain (Tarragona 1). The Commission's analysis showed that these amendments had little impact on the market concerned because the parties' market share would practically not change at all after the new agreement. The Commission, therefore, did not alter its previous positive opinion on the operation.
Monday 16 June is the deadline for Madrid to respond to Commission concerns about the general conditions imposed on the operation by the Spanish energy regulator (CNE). The Commission sent Spain a reasoned opinion in May. This was the second stage in infringement proceedings to lift the contentious conditions (EUROPE 9661). These conditions impose company management restrictions on the company buying out Endesa. Madrid says that the need for security determines these conditions but this argument has been rejected by the Commission. If Spain does not provide justification for these conditions before midnight, it could be taken to the European Court of Justice. This court has already backed the decision against Spain for having imposed similar conditions on a buyout project (which was subsequently abandoned) of Endesa by the German company E.ON (EUROPE 9617). (C.D./transl.rh.)