The European Commission (EC) approved the takeover that the companies announced on March 26, 2007, but said that Acciona’s parallel plans to acquire sole control over Endesa’s renewable energy business falls outside the scope of merger regulation, and will therefore be examined by the national competition authorities.
The EC also approved Enel, Acciona and German utility E.ON’s agreement, announced on April 2, 2007, through which Enel and Endesa will transfer a number of rights and assets to E.ON. The commission said that the applicable businesses do not fall within the scope of the notified concentration, since Enel and Acciona would not acquire any lasting control over them.
As a result, E.ON can receive Enel’s existing electricity generation, distribution and supply business in Spain (except for its stake in EUFER), certain additional Endesa assets located in Spain, and Endesa’s current business in Italy, together with related businesses in France, Poland and Turkey.
The EC said that, with regard to electricity, the only markets that would be affected as a result of the planned transaction would be the generation/wholesale and retail supply of electricity in Spain, and that, because there are still a number of players operating in the region, including Iberdrola and Gas Natural, competition in Spain would not be compromised.
The EC also said that, with regard to retail supply and vertically related sectors, the markets in which Enel, Acciona and Endesa are active do not significantly overlap and thus do not signify a threat to EU competition.
