E.C.: Conditions In E.On, Endesa Deal Illegal

Law360, New York (September 26, 2006, 12:00 AM EDT) -- The European Commission has ruled that conditions imposed on the merger of energy companies E.On AG and Endesa SA by the Spanish government violate European Union merger regulations.

The Commission said Spain’s energy regulator, Comisión Nacional de Energia, adopted the conditions without E.C. approval, and that the restrictions on the merger are “contrary to E.C. treaty rules on free movement of capital and freedom of establishment.”

The E.C. has demanded that Spain withdraw the conditions.

“The Commission will uphold its right to apply the E.U.’s merger...
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