Spain’s Iberdrola contacts EC over Scottish Power bid
Spanish power firm Iberdrola has contacted the European Commission over its EUR 17.2 billion takeover bid for Scottish Power.
Asked about the merger, EC competition commissioner Neelie Kroes told Heren Energy that it was “too early too call” if there would be any competition issues with Iberdrola’s planned acquisition, adding “we’re studying the proposal.”
The Spanish firm is seeking the green-light from Brussels in an attempt to bypass the legal hassles that Spanish energy incumbent Endesa has suffered after Germany power company E.ON announced a EUR 37.1 billion offer for the company.
Due to the pan-European nature of the proposed merger of Iberdrola and Scottish, the company believes that the European Commission, not the Spanish energy regulator CNE, must green-light the deal.
In attempt to scupper E.ON’s takeover bid for Endesa, the CNE imposed several conditions regarding the acquisition, including demands that Endesa sell off several parts of its domestic power generation capacity.
While it remains unlikely that Madrid will baulk at Iberdrola’s acquisition of Scottish Power, the Spanish firm are taking all the necessary steps to safeguard itself against any future legal roadblocks. MS/ZD
Other Related Stories
