EC says Spain has broken merger rules on Endesa

25th August 2006, Comments 0 comments

25 August 2006, BRUSSELS — The European Commission told Spain on Friday it has broken EU merger rules in its handling of the takeover of power firm Endesa by German rival E.ON. The Spanish government supported the EUR 27 billion merger, but imposed conditions, including the sale of a number of power plants, the BBC reported.

25 August 2006

BRUSSELS — The European Commission told Spain on Friday it has broken EU merger rules in its handling of the takeover of power firm Endesa by German rival E.ON.
 
The Spanish government supported the EUR 27 billion merger, but imposed conditions, including the sale of a number of power plants, the BBC reported.

Brussels had earlier warned Spain not to use its veto to block the takeover.

The Commission said it would wait for Spain's response before possibly ordering it to drop the conditions.

E.ON's bid for Endesa has been an on-going row in Spain.

Madrid had backed a bid from Spanish energy group Gas Natural.

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Subject: Spanish news

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