Power politics; European utilities.(E.ON Energie AG to aquire Endesa S.A.)

Economist (US), The, September, 2006

Under new management

Will Spain retreat and allow a German takeover of its biggest electricity firm?

THE takeover of Endesa, Spain's biggest electricity firm, by E.ON, a German utility, is well on its way, declared Angela Merkel, the German chancellor, at a press conference in Berlin last week. This might be just wishful thinking. But it is more likely to mean that Ms Merkel has some inkling that the Spanish government is preparing to back down over its obstinate obstruction of the German bid.

In spite of increasing pressure from the European Union's competition division, Jose Luis Zapatero's government has yet to give any public indication of its willingness to compromise. On August 25th EU regulators warned the Spanish government that...

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