NMa Approves Takeover of Remu by Eneco

The Netherlands Competition Authority (NMa) has granted permission for the takeover of Remu N.V. by N.V. Eneco. The parties are active, for instance, in the area of the supply of electricity and gas. After the merger, they will not acquire or strengthen a dominant position which will obstruct competition on the energy markets in the Netherlands.

With regard to the markets for the supply of electricity and gas, the fact that these markets are in a process of liberalisation and consumers will be free to choose their own supplier as of 1 January 2004 was taken into account. Although the parties will become a large player the markets for the supply of electricity and gas, there is no reason to assume that they will acquire or strengthen a dominant position. In this regard, it is important that their market share will clearly be below 30% and that a number of other large competitors are active (Nuon and Essent).

NMa has also investigated whether Essent, Nuon and Eneco-Remu will jointly have a dominant position on these markets. Due to the present liberalisation of the energy sector, the markets for the supply of electricity and gas are in a state of flux at present. Various energy companies, for instance, have become active in the Netherlands. In addition, research has shown that a significant number of gas and electricity customers switch suppliers. The conclusion is that it is not plausible that Essent, Nuon and Eneco-Remu jointly have a dominant position because of the increased dynamism of these markets.