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C11878 - Gas distribution: Antitrust Authority prohibits acquisition of joint control over Isontina Rete Gas (IRG) by Acegas-Aps and Italgas


PRESS RELEASE


PRESS RELEASE

GAS DISTRIBUTION: ANTITRUST AUTHORITY PROHIBITS ACQUISITION OF JOINT CONTROL OVER ISONTINA RETE GAS (IRG) BY ACEGAS-APS AND ITALGAS

Operation creates dominant position capable of eliminating or reducing market competition in future tenders for natural gas distribution concessions in the Ambienti Territoriali Minimi (ATEMs: Minimum Geographical Areas) of Gorizia, Trieste, Pordenone and Padua 1.

In a meeting on 17th April 2013, the Autorità Garante della Concorrenza e del Mercato decided to prohibit the transfer of joint control of Isontina Rete Gas (IRG) from Eni and Acegas-Aps to Italgas and Acegas-Aps (Hera Group).

In the Authority’s view, the operation would lead to the creation of a dominant position held by IRG which would produce a significant, lasting reduction in the markets of future tenders for natural gas distribution concessions in the ATEMs of Gorizia, Trieste, Pordenone and Padua 1. Specifically, in the four ATEMs concerned, each of the enterprises involved in the operation (IRG in Gorizia, Hera/Acegas-Aps in Trieste and Padua 1, and Italgas in Pordenone), due to their size and current ownership of concessions in these ATEMs, occupy a position characterised by major competitive advantage in view of future tenders. Through the operation which the Authority has prohibited, Italgas and Acegas would have participated jointly in tenders for gas distribution concessions in these ATEMs, with the effect of eliminating their main potential competitors (Italgas in Gorizia, Trieste and Padua 1, and Hera/Acegas-Aps in Pordenone) during the tenders, thus giving rise to the establishment of a dominant position.

Rome, 18th April 2013