EU to scrutinise Spanish conditions on Endesa bid

(BRUSSELS) - The European Commission vowed on Thursday to study conditions Spanish energy regulator CNE has imposed on a bid for Spanish power company Endesa after past concerns about protectionism.

"We are going to be scrutinising very carefully the CNE measures," Commission spokesman for competition issues Jonathan Todd told journalists.

CNE announced on Wednesday new conditions on Italian energy group and Spanish construction firm Acciona's takeover of Endesa, restricting in particular the state-controlled Italian company's influence at Endesa.

"We will want to verify whether the measures violate (EU rules) which give the Commission exclusive competence to control mergers of a European dimension such as this bid for Endesa," Todd said.

He added that EU rules ensuring the "free movement of capital and the freedom of establishment" in the 27-nation bloc "prohibit imposing conditions" on mergers that could limit those freedoms.

The Commission already has two lawsuits underway at an EU court against Madrid after CNE set a series of conditions on a previous bid by German energy group E.ON for Endesa, which failed in part due to the restrictions.

The E.ON-Endesa case was widely seen in Brussels as a flagrant example of protectionism by Spain.

Earlier Thursday, the European Commission approved Endesa's takeover by Enel and Acciona, ruling that the deal would not stifle competition.

Under the deal, E.ON will not be entirely left out because the German company has agreed to buy assets worth about 10 billion euros from Endesa if Enel and Acciona's offer succeeds.