ANTITRUST REFERS GAS NATURAL/ENDESA MERGER TO THE EUROPEAN COMMISSION
PRESS RELEASE
PRESS RELEASE
ANTITRUST REFERS GAS NATURAL/ENDESA MERGER TO THE EUROPEAN COMMISSION
Portuguese Antitrust Authority’s request seconded in letter to Competition Commissioner Neelie Kroes
The Italian Competition Authority, at its meeting on 5 October 2005, decided to back the Portuguese Antitrust Authority’s request to refer the Gas Natural-Endesa merger to the European Commission. The view of the Italian Authority, which has sent a letter to the Competition Commissioner Neelie Kroes, is that the Commission headquarters is the most suitable venue for assessing the possible effects of the takeover bid by Gas Natural for 100% of Endesa. The Italian Antitrust Authority agrees with the assessment of the Portuguese Authority that this operation may influence trade between Member States Spain and Portugal in the electricity and gas markets, and risks having a significant impact on competition within those countries. The letter also points out that both the Endesa group and Gas Natural operate in the Italian market. The merger must be reported in at least three Member States (Portugal, Spain and Italy), yet has so far been reported only to the Spanish Competition Authority. In the Italian Authority’s view, the obligation to submit the operation to various national Competition Authorities means it is necessary to coordinate their assessments of the effect on competition. Any consideration of the merger must also take into account the fact that Gas Natural, in reporting the operation to the Spanish Authority, presented a preliminary agreement with Iberdrola covering the proposed sale to the latter of certain of Endesa’s assets, including electricity generation businesses in other Member States. The cross-border nature of the provisions in the Gas Natural-Iberdrola agreement reinforces the need for coordination of the relevant assessments.
Rome, 07 October 2005