The review will evaluate the acceptability of Dong’s take over of Elsam and Energi E2, electricity generation incumbents in Denmark, and of Kobenhavns Energi Holding A/S and Frederiksberg Elnet A/S, Danish electricity suppliers.

The commission is concerned that the transaction could impede competition in Danish gas and electricity markets, due to the companies’ strengthened position on these markets. The commission has until March 6 2006 to take a final decision on whether the concentrations would significantly impede effective competition.

Reduced competition on the already concentrated Danish gas and electricity markets may prevent the full realisation of the benefits of liberalisation in the Danish energy sector. We therefore need to assess this transaction in detail to ensure competitive supply and new entry on Danish gas and electricity markets, for the benefit of customers, commented Competition Commissioner Neelie Kroes.