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EU clears RWE's takeover of Essent, with condition

Published 06/23/2009, 12:20 PM
Updated 06/23/2009, 12:33 PM

BRUSSELS, June 23 (Reuters) - European Union antitrust regulators approved on Tuesday German utility RWE's 8.2 billion euro ($11.4 billion) takeover of Essent on condition it sells its Dutch peer's controlling stake in a German unit. "RWE will in particular not be able to use its position as owner of certain interconnectors on the Dutch German border to withhold electricity and thereby increase prices in the Dutch electricity markets," EU Competition Commissioner Neelie Kroes said in a statement.

Essent-controlled Stadtwerke Bremen AG, which RWE pledged to divest, is active in the German wholesale electricity and gas markets.

RWE, Europe's fifth-largest utility, has said it would finance the Essent buy via a new 9 billion euro credit facility and existing cash balances.

The European Union executive had cleared the previous day Swedish energy group Vattenfall's takeover of the production and supply arm of Nuon for 10.3 billion euros after it agreed to sell the Dutch utility's retail units in Germany. (Reporting by Foo Yun Chee)

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