Spain Broke Law in Endesa Bidding, E.U. Court Says

The Spanish government broke European Union law by insisting that mergers in its energy sector be preapproved, the E.U.’s top court said Thursday. Spain applied the system of prior authorization to the German utility E.ON’s takeover offer for a Spanish rival, Endesa, and to Acciona’s and Enel’s competing bid for the power company. It was widely seen as an attempt by the Spanish government to fend off foreign utilities taking stakes in domestic peers. Acciona is Spanish, while Enel, its partner in the bid for Endesa, is Italian. The European Commission took the Spanish government to the European Court of Justice, accusing it of restricting the free movement of capital, a view the court backed. Since 2006, some acquisitions in the Spanish energy sector have required prior authorization from the National Energy Commission. “By... [read full story]