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EU to take action against Spain over E.ON-Endesa merger: sources
AFP
BRUSSELS
Petroleumworld.com 09 26 06
The European Commission is to take action against Spain over its handling of a proposed takeover by German energy group E.ON of Spanish electricity giant Endesa, sources said Monday.
The EU is to accuse Spain of breaching EU competition rules and internal market regulations and will make an announcement on Tuesday, the sources said.
E.ON launched an offer in February to buy Endesa for 29.1 billion euros (37 billion dollars), but the bid has faced opposition from Madrid which would prefer a merger of Endesa and the country's biggest gas supplier, Gas Natural.
The EU rulings, which are legally binding but can be contested by Spain in the European Court of Justice, would be a setback for the Spanish government which had hoped to build a national champion in the energy sector to protect the industry from foreign influence.
Spanish group Gas Natural has made an offer for Endesa of 22.5 billion euros, but its approach has been complicated by competition concerns and court action by Endesa.
Earlier this year, the EU commission gave E.ON the green light to press ahead with its takeover plans.
It then announced disciplinary action against Madrid after a decree by Spain's own regulator threatened the deal.
AFP 25 1816 GMT 09 06
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