Press Release: Mergers: Commission rules against Spanish Energy Regulator’s measures concerning E.ON’s bid for Endesa

The European Commission has decided that the decision of the Spanish Energy Regulator, CNE, subjecting E.ON’s bid for Endesa to a number of conditions breaches Article 21 of the EU Merger Regulation. The Commission’s decision is based on two facts. First, the CNE’s decision was adopted and entered into force without prior communication to, and approval by, the Commission, in violation of the communication and stand-still obligation of Article 21. Second, the CNE subjected E.ON’s acquisition of control over Endesa to a number of conditions that are contrary to EC Treaty rules on free movement of capital and freedom of establishment. The Commission’s decision that the conditions imposed by the CNE on E.ON are unlawful requires Spain to withdraw them. The Commission’s decision is legally binding, and could be invoked before a national court or public authority in Spain.

BBC News, 20.12.06: EU raps Spain over takeover bid http://news.bbc.co.uk/1/hi/business/6196875.stm

European Commission: Press Release: IP/06/1853: Mergers: Commission decides that Spanish measures in proposed E.ON/Endesa takeover violate EC law http://europa.eu/rapid/pressReleasesAction.do?reference=IP/06/1853&format=HTML&aged=0&language=EN&guiLanguage=en

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