UTILITY Spain has again run foul of European regulators by attempting to attach tough conditions to the planned €37 billion (£25 billion) takeover by E.ON, the German energy company, of the Spanish utility Endesa.
E.ON agreed to Spain’s conditions this month after the country’s energy regulator withdrew the most onerous of the 19 conditions under the threat of court action by the European Union. However, despite E.ON’s acceptance of the Spain’s face-saving compromise, the EU looks set to force Spain to remove any remaining conditions.
The European Commission issued a preliminary ruling yesterday giving warning that the terms the Spanish Government attached this month to any deal broke fundamental EU rules on the free movement of goods and capital and the right of establishment.