Commission approves Verbund/EnergieAllianz merger subject to conditions and obli

The European Commission has approved the proposed link-up between the Austrian power company Verbund and five Austrian regional power suppliers (EnergieAllianz) to supply electricity to large customers, subject to conditions and obligations. The decision follows an in-depth Phase II investigation. The Commission was initially worried that the transaction would have created or strengthened dominant positions held by Verbund and EnergieAllianz, especially on the market for the supply of electricity to large companies. The parties have entered into commitments that fully resolve the Commissions concerns . Competition Commission Mario Monti stated that: " I am happy that after lengthy and difficult discussions we were able to find a solution which will allow creation of another powerful player, especially in view of the upcoming liberalisation of the European energy market, whilst at the same time safeguarding consumer interests in Austria". Frontier advised both parties during the process. The EU's press release about the decision can be read here.