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Spain: CNMC clears sale of Repsol supply points to Fenosa

 |  November 29, 2016

Spain’s competition authority has approved the sale of of 249,715 Liquified Petroleum Gas (LPG) supply points owned by Repsol, to be purchased by rival energy giant Gas Natural Fenosa (GNF).

The addition of these supply points to Fenosa’s gas distribution network will be used to reach new customers, primarily in residential areas. GNF is the market leader in the natural gas supply and distribution industries.

The CNMC made use of market testing on other natural gas distributors and customers, hoping to fine-tune their targeted Relevant Market, the impact of the operation and the current state of competition. The CNMC concluded that the main risk posed by the sale would be excessive concentration under GNF due to the high overlap between the company’s distribution and supply activities, reinforcing GNF’s vertical position.

The agreement was approved after GNF presented the CNMC with a series of compromises regarding the sale of natural gas and the wholesale distribution of GLP. The CNMC has deemed these compromises to be sufficient to effectively resolve any obstacles to effective competition that may result from the sale.

Full Content: CNMC

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