EU approves takeover of Spain's Endesa
Friday, 6 July 2007
BRUSSELS, July 5 (AP): European regulators approved the takeover of Spain's largest utility Endesa by Acciona and Italian utility Enel Thursday.
The European Commission said its investigation found the proposed deal "would not significantly impede" competition in the European Union energy market. The EU's green light to the 43.7 billion euros (US$59.5 billion) deal brings to an end the bidding war for Endesa SA, which raised EU concerns over Spanish efforts to keep Endesa out of foreign hands.
Spain's Acciona SA and Enel SpA agreed in March on a joint bid for Endesa to acquire shares in the utility that they did not already control or own.
The Commission said it looked specifically to what extent the deal would disrupt the electricity sector in Europe.
Endesa's share price has doubled since September 2005, when Gas Natural launched a hostile bid, later challenged by Germany's E.On AG. That triggered the ongoing takeover battle for the company.
The EU's Competition Commissioner Neelie Kroes took Spain to the EU's Court of Justice in March to protest Madrid's attempt to block E.On AG's bid to buy Endesa.
Brussels claims Spain applied restrictions that were illegal under EU competition rules.
In the meantime, E.On dropped its politically sensitive bid for Endesa, opening the way for the current deal.
The European Commission said its investigation found the proposed deal "would not significantly impede" competition in the European Union energy market. The EU's green light to the 43.7 billion euros (US$59.5 billion) deal brings to an end the bidding war for Endesa SA, which raised EU concerns over Spanish efforts to keep Endesa out of foreign hands.
Spain's Acciona SA and Enel SpA agreed in March on a joint bid for Endesa to acquire shares in the utility that they did not already control or own.
The Commission said it looked specifically to what extent the deal would disrupt the electricity sector in Europe.
Endesa's share price has doubled since September 2005, when Gas Natural launched a hostile bid, later challenged by Germany's E.On AG. That triggered the ongoing takeover battle for the company.
The EU's Competition Commissioner Neelie Kroes took Spain to the EU's Court of Justice in March to protest Madrid's attempt to block E.On AG's bid to buy Endesa.
Brussels claims Spain applied restrictions that were illegal under EU competition rules.
In the meantime, E.On dropped its politically sensitive bid for Endesa, opening the way for the current deal.