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Last Updated: Friday, 21 September 2007, 11:05 GMT 12:05 UK
Brussels raps Spain over Endesa
Endesa headquarters
Spain has 30 days to respond to the allegations regarding Endesa
Spain broke EU law by imposing terms on the purchase of energy company Endesa by peers Enel of Italy and Spain's Acciona, the European Commission says.

In a preliminary finding Brussels said it believed Madrid broke takeover laws when it imposed protectionist terms.

Spain's energy commission had wanted to intervene if it believed the new owners of the firm were not acting in the best interests of Spanish energy users.

The Commission approved the 42.5bn euro ($60bn; £30bn) deal on 5 July.

It also said it had sole jurisdiction over the deal.

But Spain's National Energy Commission had imposed conditions on 26 April and 4 July, breaching the buyers' rights.

The European Commission said its preliminary view was the Spanish energy commission, CNE, violated the companies' rights to invest, set up a business and move goods anywhere in the 27-state community.

Spain has 30 days to defend itself before the EU takes a final decision that would overrule Spanish decisions.

Enel's deal with Acciona for Endesa expires on 1 October. A rival bid by German firm E.On collapsed in April.



SEE ALSO
Endesa receives new takeover bid
11 Apr 07 |  Business
Germany's E.On ends Spanish bid
02 Apr 07 |  Business
EU in court move over Endesa bid
28 Mar 07 |  Business
E.On boost in Spanish power fight
27 Mar 07 |  Business
Acrimony over Endesa bid battle
26 Mar 07 |  Business
Endesa bid battle nearing climax
23 Mar 07 |  Business

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