The European Commission has approved part of a merger deal between Swedish power group Vattenfall and Danish Oil and Natural Gas (DONG) regarding Danish power players Elsam and Energi E2.
The Commission has now given the green light for Vattenfall’s acquisition of electricity and heat assets in Denmark. “Our ambition is that the acquired operations shall be owned and operated by Vattenfall by 1 May, ” the company said in a statement.
As part of the same deal, Dong reaffirmed its plans for a stock market listing in 2007 as part of a partial privatisation.
The company is aiming for growth in northwest Europe and is to focus on consolidation in the coming year following a series of takeovers, including a number related to the Elsam and Energi 2 deals.
The Commission is still considering some of the deals related to Dong, which is expected to control around 75% of the Danish gas and electricity market should the deals be approved.
Meanwhile, share prices for the UK’s Scottish & Southern Energy (SSE) have rocketed on speculation that Vattenfall is preparing to make a takeover bid for the company following a failed bid from Germany’s Eon.
Both companies declined to comment on the reports.