The EC fined Electrabel €20 million for acquiring Compagnie Nationale du Rhône (“CNR ”) without prior EC approval. Electrabel is a Belgian electricity producer and retailer controlled by the French energy group GDF Suez. CNR is a French electricity producer. In 2003, Electrabel acquired CNR ’s shares held by the French group EDF and became CNR ’s largest shareholder. The EC found that due to wide dispersion of the remaining CNR ’s shares, Electrabel enjoyed a stable majority at CNR ’s shareholders’ meetings. Moreover, Electrabel was the sole industrial shareholder of CNR and has taken over the operational management of the company’s power plants and the marketing of its electricity. Based on these facts, the EC concluded that Electrabel had acquired control over CNR in 2003. However, Electrabel notified the EC of this transaction only in 2008. Therefore, Electrabel was in violation of the rule which prohibits the parties from closing a reportable transaction before obtaining EC clearance.
EC fines Electrabel €20 million for gun-jumping
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