BRUSSELS - The European Union's top regulator on Monday approved German energy giant E.ON's proposed acquisition of Viesgo and parts of Spanish energy company Endesa, including Endesa Europa.
"After examining the operation, the (European) Commission concluded that the proposed transaction would not significantly impede effective competition in the European Economic Area or any substantial part of it," the Commission said in a statement.
In particular, E.ON would acquire control of Endesa Europa, which controls Endesa's activities in France, Poland, Italy and Turkey, and of certain minor activities of Endesa in Spain.
Viesgo is currently controlled by the Italian electricity company Enel.
The Commissions examination of the proposed takeover "confirmed that the parties have limited overlapping activities in the electricity markets in France, Italy, Germany and Poland," the Commission said.
"The proposed transaction is not likely to create competitive concerns in any of these countries, as the combined entity would have very limited market shares and would face competition from other significant players."
The E.ON bid for parts of Endesa followed a failed 42-billion-euro (58-billion-dollar) attempt to buy the company outright which the German giant withdrew in April before lodging the smaller 10 billion euro bid.
08/06/2007 11:38 GMT