Commissie stelt onderzoek in naar fusie tussen Gaz de France en Suez groep (en)

The European Commission has decided to open a detailed investigation under the EU Merger Regulation into the planned merger between Gaz de France (GDF) and the Suez group of France. 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 horizontal overlaps and the vertical relationships between the two companies' activities. The decision to open an in-depth inquiry does not prejudge the final result of the investigation. The Commission now has 90 working days (until 25 October 2006) to take a final decision on whether the concentration would significantly impede effective competition within the European Economic Area (EEA) or a significant part of it.

"The energy sector is essential for European competitiveness", commented Competition Commissioner Neelie Kroes i. "It is therefore crucial that the Commission carefully analyses the competitive impact of this merger, to ensure that it does not crate more barriers to a fully functioning Single Market for energy. I must ensure that industry and consumers in Belgium and France do not pay the price for this merger".

GDF is the incumbent gas operator in France, and is also active in other European countries, most notably Belgium. It is also a new entrant in the electricity sector in France, Belgium and the UK. GDF is currently controlled by the French State.

Suez is active in the gas and electricity sectors, in energy services and in water and environmental services. Its geographic focus in the energy sector is Belgium, via its subsidiaries Distrigaz and Electrabel. It has also recently entered the French markets in both gas and electricity.

During its initial investigation, the Commission has identified serious risks that the planned merger may result in a significant impediment to competition as it would combine the supply activities of the two main gas and electricity operators in Belgium and of two of the three main gas operators in France (Total being the third). Moreover, the proposed transaction would give the new entity control of most gas imports into both Belgium and France. This risks excluding competitors from the downstream gas and electricity markets as little gas liquidity would exist independently of the new entity. Finally, the Commission has identified potential vertical problems stemming from the parties' control over essential infrastructure (e.g. transmission and transport networks, storage facilities).

The Commission is therefore concerned that the merger would remove important competitive constraints that the two companies currently exert on each other, and may create or strengthen barriers for third parties to enter the market, thereby undermining the benefits of the on-going liberalisation of the energy sector in both Belgium and France.

On the basis of these concerns, the Commission has decided to open an in-depth investigation in order to carry out a thorough assessment of the effects of the transaction on European energy markets and related sectors, with a focus on Belgium's gas and electricity markets and on France's gas markets. During this in-depth investigation, the Commission will also analyse the impact of the transaction in other national markets, in particular the UK, Hungary and Luxemburg.