European energy heavyweight E.ON is believed to be willing to negotiate a compromise with Spanish authorities in order to ensure its acquisition of Iberian power giant Endesa goes ahead.
After a long and drawn out regulatory process, the Spanish energy authority has given a conditional green light to E.ON’s bid to capture Endesa. However, the conditions imposed, which included requiring E.ON to sell off major chunks of Endesa’s generating assets, were considered by the German outfit to be excessive, leading it to threaten countermeasures.
However, according to a report from the Financial Times, E.ON is now prepared to talk over a compromise with Spanish agencies. We can accept some of the conditions but all of them would be very difficult. Perhaps there are other solutions, commented Wulf Bernotat, E.ON’s chief executive.
The new willingness to open a dialogue comes as rival suitor Gas Natural waits in the wings, still maintaining the endorsement of the Spanish government.
Meanwhile E.ON has reported a 13% increase in EBIT profit for the first half of the financial year.