The European Commission has extended by 10 working days its review under the EC Merger Regulation of the proposed acquisition of by Swedish state-owned electricity company, Vattenfall AB (Vattenfall) of Dutch utility, N.V Nuon Energy (Nuon), in order to scrutinise remedies offered by the parties aimed at tackling concerns the deal may be anti-competitive. The new deadline for the Commission to either clear the deal or proceed to an in-depth Phase II investigation has been set for 22 June.
On 28 April 2009, the Commission received a notification of the proposed concentration. Overlaps in the supply of retail electricity in the Hamburg and Berlin regions constitute the main focus of the Commission investigation as, together, the combined Vattenfall-Nuon group could hold market shares of an estimated 50 to 70 percent in these markets.
Vattenfall believes that the proposed divestment of Nuon’s German activities will be enough to alleviate regulatory concerns as no other significant overlaps exist.