April / May 2001

Spain: Merger of two main electricity suppliers abandoned

01 April 2001

As a result of the regulatory difficulties which mergers between Spanish utilities have faced, and given the two recent aborted transactions involving Unión Fenosa/ Hidrocantábrico and Endesa/Iberdrola, the Spanish electricity market is now being targeted by non-Spanish utilities anxious to establish themselves in the fast-growing Spanish market. These transactions, some of which are being notified to the European Commission, are more likely to gain competition clearance in view of the lack of national overlaps between the different utilities across Europe.