Electrabel And The EC's Record-Setting Fine

Law360, New York (July 21, 2009, 3:33 PM EDT) -- On June 10, 2009, the European Commission imposed a fine of €20 million on electricity producer Electrabel for acquiring control of electricity producer Compagnie Nationale du Rhône (CNR) without seeking prior approval from the commission under the EC Merger Regulation ("ECMR").

The commission held that by acquiring close to 50 percent of CNR's shares in December 2003, Electrabel was "by far CNR's largest shareholder" and had acquired de facto sole control of the company.

Closing the transaction without notifying and obtaining clearance from the commission amounted...
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