Having welcomed the European Commission's decision that the conditions imposed by the Spanish energy authority CNE on the Endesa takeover do not conform with European law, E.ON has upped its bid for the Spanish utility to E35 per share.
E.ON announced that it intends to increase its all-cash bid for Endesa to E35 per share, a substantial increase on the German energy titan’s initial bid of E25.5, which was made in February.
Our revised offer provides an exceptionally attractive opportunity for Endesa’s shareholders and reflects our long-term confidence in Endesa’s business model and growth prospects, commented E.ON CEO Wulf Bernotat.
E.ON’s increased bid came hot on the heels of the European Commission’s decision to rule against the Spanish energy regulator’s measures concerning E.ON’s bid for Endesa.
The EU authority found that the decision of CNE to subject E.ON’s bid for Endesa to a number of conditions breaches Article 21 of the EU Merger Regulation. The Commission said it came to this conclusion based on the fact that, firstly, the CNE’s decision was adopted and entered into force without prior communication to, and approval by, the Commission, in violation of the communication and stand-still obligation of Article 21. Secondly, that CNE subjected E.ON’s acquisition of control over Endesa to a number of conditions that are contrary to EC Treaty rules on free movement of capital and freedom of establishment, the Commission said.
The Commission’s decision that the conditions imposed by the CNE on E.ON are unlawful requires Spain to withdraw them. The determination is legally binding, and could be invoked before a national court or public authority in Spain.
Welcoming this development, E.ON said it assumes that the Spanish industry ministry will now decide quickly on its complaint against the CNE conditions and follow the Commission’s legal position.
E.ON’s increased bid also comes shortly after Spanish energy and construction company Acciona’s acquisition of a 10% stake in Endesa, which the company could raise to 25%.