Zapatero and Merkel could reach deal over Endesa

12th September 2006, Comments 0 comments

12 September 2006, MEERSBURG — The row between Madrid and Berlin over the takeover bid for Spain's biggest electricity company Endesa topped the agenda at a meeting on Tuesday between Jose Luis Rodriguez Zapatero and the German chancellor Angela Merkel.

12 September 2006

MEERSBURG — The row between Madrid and Berlin over the takeover bid for Spain's biggest electricity company Endesa topped the agenda at a meeting on Tuesday between Jose Luis Rodriguez Zapatero and the German chancellor Angela Merkel.

The Spanish government is now prepared to clear the German energy giant's E.ON's planned takeover of Endesa if the German utility agrees to sell just 25 percent of Endesa's domestic operations, the Spanish daily El Pais said.

Spanish energy sector regulator CNE had demanded that E.ON sell off 33 pct of the local assets on competition grounds.

The compromise will be discussed by Zapatero and Merkel at the German town of Meersburg.

El Pais suggested Zapatero would prefer a compromise deal with Germany in order to guarantee support over issues like large-scale immigration, which has caused a major crisis in Spain.

The CNE approved E.ON's offer in July, but with 19 conditions.

E.ON has appealed against the CNE decision to the Spanish Industry Ministry, while the European Commission accused Spain of contravening EU anti-protetionist laws in some of the conditions set by the CNE.

Spain has to give its response to the EU's claims by Wednesday.

Spain's Industry Ministry is still studying whether E.ON should be obliged sell Endesa's nuclear power plants or power plants being run with Spanish coal.

[Copyright EFE with Expatica]

Subject: Spanish news


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