Commissie onderzoekt fusieplannen tussen Deense energiebedrijven (en)

The European Commission has opened an in-depth inquiry under the EU Merger Regulation into the proposed acquisition of sole control by DONG A/S ("DONG"), the Danish state-owned gas incumbent, over Elsam and Energi E2 ("E2"), electricity generation incumbents in Denmark, and of Kobenhavns Energi Holding A/S ("KE") and Frederiksberg Elnet A/S ("FE"), Danish electricity suppliers. The Commission is concerned that the transaction could impede competition in Danish gas and electricity markets, due to the companies' strengthened position on these markets. The decision to start an in-depth review does not prejudge the final decision in this case. The Commission has now 90 working days (until 6 March 2006) to take a final decision on whether the concentrations would significantly impede effective competition within the European Economic Area or a significant part of it.

"Reduced competition on the already concentrated Danish gas and electricity markets may prevent the full realisation of the benefits of liberalisation in the Danish energy sector. We therefore need to assess this transaction in detail to ensure competitive supply and new entry on Danish gas and electricity markets, for the benefit of customers", commented Competition Commissioner Neelie Kroes.

DONG is the Danish state-owned gas incumbent active in exploration, production, off-shore transport and sale of oil and natural gas, as well as storage and distribution of natural gas. It also has some activities related to wind electricity generation and supply of electricity and heat.

Elsam and E2 are the Danish electricity generation incumbents in West Denmark and East Denmark respectively. They are both active in production and trading of electricity (financial and physical) on the wholesale market and in production of district heating. Elsam also has activities in electricity retailing to household and business customers.

KE and FE supply household and business customers with electricity in the Copenhagen area. They are currently owned by the City of Copenhagen and the City of Frederiksberg, respectively.

Danish electricity and gas markets are fully open to competition in accordance with EU Directives.

The results of the Commission's first phase investigation indicate that the merger would remove Elsam and E2 as competitors of DONG from gas storage/flexibility markets and gas supply markets. The transaction is also likely to remove DONG as a potential competitor from electricity markets in Denmark. The merger would also risk impeding the development of a liquid wholesale market for natural gas.