Iberdrola believes that the government's decision to approve with conditions Gas Natural´s takeover offer for Endesa is in Spain's general interest, because it will be beneficial for consumers as well as for the companies in the sector and society in general.
The company said in a statement that the decision taken by the council of ministers is logical from the point of view of defending competition because, if Gas Natural´s offer is successful in the terms in which it has been proposed, it will improve the industry’s competitive situation.
In Iberdrola´s view, this decision will guarantee, on one hand, investment in new generation plants and electricity distribution networks. These investments are needed to cover growing energy demand and will result in improved service quality in the autonomous communities they affect. On the other hand, the decision will allow the extension of the gas network through all of Spain.
Iberdrola likewise believes that the government has respected the principle of free enterprise, by leaving to shareholders the decision about what is in their best interest. In any event, it is up to Gas Natural to study the conditions imposed and to decide whether to go through with the transaction. Iberdrola wishes to point out that this process could produce an energy industry whose structure is similar to the industry’s structure in other European countries.
Iberdrola also believes that the government’s announcement today does not affect, in principle, the agreement signed between Iberdrola and Gas Natural for the sale of assets, an agreement subject both to the success of the takeover offer and to obtaining the pertinent administrative approvals and authorizations from third parties.
According to the terms of the agreement, Iberdrola would buy generation plants and natural gas and electricity supply points in Spain, along with power stations in Italy and 65% of the French company SNET, and it has expressed interest in other assets in areas of Latin America in which it already has a presence.