The DCCA conditionally clears an acquisition in the natural gas sector subject to the divestment of 107,000 consumers
Written By
Partner
Denmark
I'm a partner and co-head of our international Competition & EU group. I also lead the Competition & EU team in Denmark. I have a particular focus on applying competition & EU law as a tool to achieve specific and measurable business objectives for our clients.
On 28 May 2020, the Danish Competition and Consumer Authority (DCCA) received a complete notification of SEAS-NVE A/S’ (SEAS-NVE) acquisition of control of several subsidiaries of Ørsted A/S.
Based on an overall assessment, the DCCA assessed that the merger would give rise to unilateral effects in the market for retail supply of natural gas to consumers – particularly by risking price increases on natural gas as the transaction would unite the two largest providers of natural gas to consumers in Denmark.
In order to address the concerns of the DCCA, SEAS-NVE committed to divest all its 107,000 natural gas consumers in one of the acquired subsidiaries. The aim is to ensure effective competition in the market for retail supply of natural gas to consumers following the merger.
Consequently, the DCCA assessed that the provided commitment sufficiently addressed the unilateral effects and approved the merger subject to the commitments.
SEAS-NVE had at the time of the DCCA decision entered into an agreement with OK a.m.b.a. to acquire the 107,000 consumers.
Please refer to the DCCA’s approval here (only available in Danish) or an English overview here.
For more information contact Morten Nissen or Frederik Haugsted.
