Commission set to drop toll-road merger case

The European Commission announced yesterday (18 July) that it was ready to drop its case against the Italian government over measures that obstructed a merger between toll-road companies Abertis and Autostrade.

Spanish firm Abertis last year scrapped plans to merge with Italian counterpart Autostrade, citing regulatory uncertainty over management and investment issues.

Since being threatened with legal action, the Italian government has tried to clarify authorisation procedures for the transfer of motorway concessions.

The revised version of the public interest rules sets two clear requirements for future control of Italian highways: companies seeking control have to demonstrate that they can manage effectively and that they can meet existing investment obligations.

Competition Commissioner Neelie Kroes said that she would close the case once she was satisfied that "a favourable environment has been established for potential future mergers in the sector".

The closure of competition proceedings will not affect investigations into possible infringements by the Italian government of EU internal market rules. The Commission has taken issue with the way highways are governed in Italy. A ruling is expected after the summer break.

The European Commission announced yesterday (18 July) that it was ready to drop its case against the Italian government over measures that obstructed a merger between toll-road companies Abertis and Autostrade.