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EU sets further demands on Suez/GDF before approving merger: source
AFP
PARIS
Petroleumworld.com 10 12 06
The European Commission is asking Suez and Gaz de France to increase the number of remedies for ensuring fair competition on energy markets to approve their merger, a source close to the matter said Wednesday.
The commission had already warned the companies that it would not approve the deal unless business divestments and other measures were taken to ensure they would not have a dominant position in Belgium and France.
"There are new demands from the services of (EU Competition Commissioner) Neelie Kroes, new demands on the remedies" that have been proposed by Suez and GDF, the source told AFP.
Both companies had sent the commission a number of proposals on September 20, including the sale of GDF's 25.5 percent stake in Belgian electricity group SPE.
The EU Commission is due to make its final ruling on the merger by November 17.
Gaz de France and private French energy group Suez are close to finalising a merger that would create the biggest gas group in Europe and the fifth biggest electricity producer.
But they must address competition issues raised by both the European Commission and the government here since both companies have activities in Belgium.
AFP 11 1902 GMT 10 06
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