The Spanish government has requested more time to respond to a demand from the EU to explain its handling of the Endesa takeover affair, local media reports suggest.
According to the Dow Jones quoting Spanish newspaper El Pais, the Madrid government has asked for an extension to the September 4 deadline set by the European Union to justify the restriction placed on a potential successful E.ON purchase of Endesa.
In what has been a long and often strained process, the Spanish energy authority recently gave its approval for the German utility to buy Spanish power outfit Endesa. This move falls in line with EU wishes.
However, in what has been considered a sting in the tail move, the Madrid regulator added a caveat of 19 conditions on the approval, including the insistence of major divestments of Endesa assets post purchase.
The added conditions have angered Brussels officials and have been considered to be inconsistent with EU attitudes to M&A dealings within the energy sector. Therefore, Brussels has demanded an explanation for the conditions, giving a September 4 deadline for a response.
The Spanish government has reportedly asked for a few more days to respond. However, as things stand, Brussels will be able to formally ask Madrid to remove the conditions if no answer to its inquiry is received by the deadline date.