In a timely new twist to the ongoing Endesa takeover saga, the European Commission has given its approval for German energy giant E.ON to go ahead with its bid for the Spanish utility.
The Brussels authority said that there were no antitrust issuers regarding the potential tie-up because the two major western power outfits have very few overlapping geographical business areas.
The EU green light has come as the Spanish government is maneuvering to ensure domestic rival Gas Natural is the successful suitor in order to prevent Endesa falling into foreign hands. Such a move could be interpreted as protectionism and not surprisingly Madrid and Brussels have clashed over the Spanish government attitude.
E.ON’s E29.1 billion all cash offer is E7 billion more than Gas Natural has bid. However, despite the EU all clear, the German outfit still appears to face the opposition of a Spanish government that in February, just a few days after E.ON made its rival offer for Endesa, passed a law expanding its energy regulator’s powers to block foreign takeovers.