Brussel onderzoekt Frans fusieplan (en)

The European Commission is to investigate the planned merger between French energy company Gaz de France and Belgian-French energy company Suez, indicating it could be a threat to free competition in the two countries.

The commission said on Monday (19 June) that it would open an in-depth probe into the plans saying it could have negative effects on competition of the free market in France and Belgium.

"The commission's initial market investigation has found that the proposed transaction would raise significant competition concerns at all levels of the gas and electricity supply chain in Belgium and at all levels of the gas chain in France, given the ... relationships between the two companies' activities," the commission said in a statement.

It is due to make a decision by 25 October at the latest.

The €70 billion French energy merger, announced by French prime minister Dominique de Villepin in February, has been widely seen as orchestrated by Paris to thwart the takeover of Suez by Italian energy firm Enel.

The French plan is disliked by the commission as it runs contrary to Brussels' ambition to create a European energy market with pan-European players.

Brussels in March demanded further information from the French government, but it emerged last month that the information so far has demonstrated that the transaction is not running against the internal market.

But Brussels is now looking to see if the move would hinder free competition on the EU market.

"I must ensure that industry and consumers in Belgium and France do not pay the price for this merger," said EU competition commissioner Neelie Kroes i in a statement.

"The energy sector is essential for European competitiveness," she stated. "It is therefore crucial that the commission carefully analyses the competitive impact of this merger, to ensure that it does not create more barriers to a fully functioning single market for energy."

Meanwhile, Mr de Villepin has said that before September he will try and persuade members of the French assembly of the necessity of a smooth merger between Suez and Gaz de France, reports French daily Le Monde.

On 28 June, the government will present a proposal and an extraordinary debate is scheduled for September. Last week, a majority of French MPs voted against the project.

In a statement on Monday, Suez and Gaz de France said they will take advantage of the summer to explain the benefits of the merger in terms of security of supply, employment and electricity prices for French consumers.