Spain: REE seeks takeover of Hispasat for €1.2b

Red Eléctrica de España (REE), one of Spain’s leading electrical transmission networks, will approach the National Commission of Markets and Competition (CNMC) to request their authorization to take over the Hispasat satellite network, for approximately €1,200 million (US$1,394 million).

In order to carry out the transaction, REE must demonstrate that this investment will not pose a risk to its regulated activity at a time when an acceleration of investments in telecommunications and interconnectivity is expected.

The CNMC will have to consider the risks such a purchase could pose for REE, which could increase its debt by nearly 25%.

The former National Energy Commission has once already blocked REE from making investments abroad, arguing it could pose a risk for the company’s regulated, official role as an energy network manager. The CNMC will have to consider the risks such a purchase could pose for REE, which could increase its debt by nearly 25%.

The purchase now falls under the jurisdiction of the Competition Authority, as REE has a significant presence in the optic fiber market, in which it competes with Hispasat.

Full Content: El Economista

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