The European Union has ordered the Spanish government to drop its attempt to block a takeover of Spanish power company Endesa by Germany’s E.ON. That came on the same day that the Spanish conglomerate Acciona said that it has purchased 10% of Endesa, that it has a guarantee for a further 3.6% of shares and it could buy as much as a quarter of the company. E.ON said it will not give up, but analysts believe this means it will have to pay more for Endesa.
Acciona, a construction group, is also Spain’s second largest renewable energy operator. The EU Competition Commissioner’s office said there was no indication that the Spanish government had been involved in the move by Acciona. In Madrid, Endesa’s shares rose nearly 11% on the news of Acciona’s purchase. They are up 46% since the start of the year. Acciona’s and E.ON’s shares both fell.