On 22 December 2008, the acquisition of British Energy (BE) by Electricité de France S.A. (EDF) was given conditional clearance by the European Commission (Commission). In the UK, EDF is active mainly in coal and gas power generation, wholesale and supply and distribution of electricity. The merged entity would have very high market shares for generation and wholesale sale of electricity and supply to industrial and commercial customers. EDF had to make certain concessions to obtain clearance for the deal to address competition concerns. The principal competition risks identified by the Commission were that:(i) the merged entity might have an incentive to reduce supply in order to increase prices;(ii) there was an incentive to increase internal use of electricity that would otherwise have been sold to third parties in the market; (iii) EDF would end up owning many of the potential sites for new nuclear power stations; and (iv) the merged entity would hold connection rights which could be used to delay competing generation projects. To address these concerns, EDF agreed to: divest power generation plants at Sutton Bridge and Eggborough; agree to sell minimum volumes of electricity to the British wholesale market; divest a site suitable for a new nuclear power station; and terminate one of its grid connection agreements with the National Grid to provide access for third parties.
- Checklist Checklist: Trade association participation (USA) Recently updated
- How-to guide How-to guide: How to draft an antitrust–unfair trade practices compliance program (USA) Recently updated
- Checklist Checklist: Conducting an antitrust audit (USA) Recently updated