M&A

12 November, 2009

UPDATE 1-EU clears EDF's buy of Segebel with conditions

(Adds details, background)

BRUSSELS, Nov 12 (Reuters) - French utility EDF (EDF.PA) won permission from European Union regulators on Thursday to acquire Belgium's Segebel, subject to EDF's divestment of some assets in a planned power station project.

The European Commission, the competition watchdog of the 27-nation EU, said in a statement that it had accepted remedies offered by EDF to address competition concerns raised by the deal in the Belgian wholesale electricity market.

EDF has committed to immediately divest the assets of one of its companies in charge of the development of one of EDF's 920 megawatts planned power station projects, the EU executive said.

And if EDF were not to invest in a second power station planned for June 2012, or no decision to invest has been taken by then, it has committed to divest the assets of the company that would develop the project, the commission said.

"The remedies will ensure that additional electricity generation is put on the market in the future which should lead to greater competition to the benefit of consumers," EU Competition Commissioner Neelie Kroes said in a statement.

EDF plans to buy Segebel SA, which owns a 51 percent stake in SPE, to strengthen its position in the Benelux market. SPE is the second-largest player in the Belgian energy market with a turnover of 2.4 billion euros ($3.60 billion).

British utility Centrica (CNA.L), owner of Britain's largest supplier of domestic gas and electricity British Gas, is selling the SPE stake.

(Reporting by Bate Felix; Editing by Bernard Orr)

Source: http://www.reuters.com