Press Release: Mergers: Commission informs Spain of preliminary assessment that Spanish Minister’s measures in proposed takeover E.ON / Endesa violate EC law

The European Commission has informed the Spanish authorities of its preliminary conclusion that Spain has violated Article 21 of the EU Merger Regulation in that certain conditions imposed on E.ON for its proposed acquisition of control over Endesa raise serious doubts as to their compatibility with EC law. The Commission refers in particular to new conditions imposed by the Spanish Minister of Industry, Tourism and Trade in a decision of 3 November 2006, adopted in the framework of an administrative appeal against a previous decision of the Spanish Energy Regulator, CNE, on the proposed transaction. Spain has until 13 December 2006 to express its views on the Commission’s preliminary assessment.