The Italian Competition Authority rejects a freezing prices remedy and blocks a near-monopoly energy merger
The Italian Competition Authority has blocked the Compagnia Valdostana delle Acque (CVA) acquisition of two regional energy firms, Deval and Vallernergie ( decision n. 22683 of 4 August 2011, Case C11082, CVA-Compagnia Valdostana delle Acque/Deval-Vallenergie) . The ICA found that the proposed transaction would have given CVA a quasi monopoly position in some electricity markets in the northernmost region of Valle d’Aosta, namely in the market for low-voltage retail energy sales to domestic clients and in the market for sales to non-domestic clients. CVA was active in the market for power generation and in the wholesale and retail markets for sales of electricity in the Valle d’Aosta region. With the notified merger CVA intended to buy 51% of share capital in two Valle d’Aosta-based power operators, Deval and Vallenergie from Enel, the Italian electricity incumbent operator. Deval traded in the market for distribution of power, while Vallenergie supplied power to domestic clients. ...