The Finnish Market Court overrules the NCA’s conditional merger clearance in the electricity sector after completion of the transaction subject to conditions (Fortum Power-Heat / E.ON Finland Oy)

In June 2006, the FCA cleared Fortum Power and Heat Oy's (“Fortum”) acquisition of E.ON Finland Oy (“E.ON”) subject to certain structural and behavioral conditions. The requirement of conditions by the FCA was materially based on the view of the FCA that the market for the production and wholesale of electricity was national in its geographic scope. Since Fortum was considered to have significant market power on the Finnish market prior to the transaction, conditions were deemed necessary even though Fortum's market position would only have strengthened marginally as a result of the acquisition. E.ON's exit from the market was considered to potentially have had significant adverse effects on the functioning of competition, inter alia, by eliminating the pressure of potential competition.

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  • Roschier (Helsinki)

Quotation

Niko Hukkinen, The Finnish Market Court overrules the NCA’s conditional merger clearance in the electricity sector after completion of the transaction subject to conditions (Fortum Power-Heat / E.ON Finland Oy), 14 March 2008, e-Competitions Bulletin Energy & Mergers, Art. N° 16336

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