The Estonian Competition Authority has taken extra time to more thoroughly examine Estonian state-owned energy group Eesti Energia's acquisition of Nelja Energia.
The authority decided to more thoroughly examine the state company's plan to acquire the large renewable energy company and launch a supplementary proceeding of the merger, which means that the regulatory body will have an extra four months to deliberate the merger, reported business daily Äripäev (link in Estonian).
According to the Competition Act, supplementary proceedings are initiated primarily in order to determine that a merger subject to control does not significantly restrict competition on the market by creating or strenghtening a dominant position.
After four months, the Estonian Competition Authority must decide whether or not to allow the merger of Eesti Energia and Nelja Energia; the authority may also attach preconditions to the merger which must be met by the parties involved.
In late May, Eesti Energia announced its intention to purchase Nelja Energia for a sum of €289 million. The state-owned company also promised to take out over €204 million in green company loans.
Currently, the main shareholder of Nelja Energia is Norway's Vardar Eurus, which holds 77% of company shares.
Editor: Aili Vahtla