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Electricity: VEBA and VIAG: Commission refuses to refer merger to Germany

United Kingdom
04/02/2000
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The Commission has opened an in-depth investigation into the above merger.

It considers that the proposed merger raises serious concerns as regards, in particular, the strong position of both parties in electricity generation and transmission in Germany, as well as the market for certain chemicals.

Germany had requested the reference of the concentration to its competent authorities. It informed the Commission that the concentration would create or strengthen a dominant position in the distinct regional or national markets for electricity in Germany, which would significantly impede competition in those markets.

The Commission nevertheless considered that an overriding Community interest pleads in favour of an investigation at Community level. Because of the central importance of Germany in this area, the merger is also likely to have significant consequences for the future structure of the whole European market. On the basis of its preliminary assessment, the Commission considered that certain provisions discriminate against, in particular, foreign suppliers and could lead to the foreclosure of national markets. For these reasons, it has decided to undertake a full investigation of the case.

Within four months, it will have to make a final decision. The investigation is likely to be carried out in close liaison with the Bundeskartellamt which is currently investigating the merger between RWE and VEW. (IP/00/114, 4 February 2000).

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