Spain plays for extra-time on energy

The Spanish government has indicated that it will ask the European Commission for more time to explain the conditions it is attaching to approval of E.ON’s €29.1 billion bid for Spanish energy group Endesa.

David Vegara, secretary of state for economic affairs, announced the decision yesterday (30 August) in Madrid. The current deadline imposed by the Commission expires on Monday (4 September).

The Commission announced last week (25 August) that Spain had violated Article 21 of the EU merger regulation. Most of the 19 conditions imposed by Spanish regulator CNE, consisting mainly of asset disposals, were considered unlawful.

"They have to explain why they want an extension," said Jonathan Todd, EU spokesperson for competition. "We could go ahead [with legal action] without hearing what they have to say.

Todd said that, were the Commission to rule that conditions imposed by the CNE were illegal, the Spanish would almost certainly contest the decision.

The Spanish government has indicated that it will ask the European Commission for more time to explain the conditions it is attaching to approval of E.ON’s €29.1 billion bid for Spanish energy group Endesa.