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Commission Clears Acquisition by Centrica of Bord Gais Energy

23 Jun 2014

The European Commission has granted clearance under the EU Merger Regulation to the acquisition of sole control by Centrica of the United Kingdom of Bord Gáis Energy Limited (BGE) of Ireland.

Centrica is an integrated energy company, which produces, sources and supplies gas and electricity for residential and business customers in the UK and North America.

BGE is a wholly owned subsidiary of Bord Gáis Eireann, with a focus on the purchase and supply of gas and electricity for residential and business customers in the Republic of Ireland.

On the basis of national markets for the wholesale supply of gas there would be no overlap in the Republic of Ireland. The Parties’ activities overlap in a market for the wholesale supply of gas in the UK. However, the increment is small, the combined market share is modest and the Parties continue to face competition from numerous other players.

Therefore, the transaction does not create a risk of input foreclosure with regard to the retail markets in the UK or the Republic of Ireland.  Moreover, while BGE has significant activities in the markets for the retail supply of gas in the Republic of Ireland and Centrica has significant activities these markets in the UK, the Parties’ competitors in the market for the wholesale supply of gas have sufficient economic alternatives to sell their supplies. Therefore, the transaction does not create a risk of customer foreclosure with regard to the retail markets in the UK or the Republic of Ireland. The Commission therefore concluded that the transaction would not raise competition concerns. The transaction was examined under the normal procedure.

Story appears courtesy of europa.eu

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