A PYMNTS Company

With Energotrans buy cleared, ÄŒEZ one step closer to becoming Prague’s major heat supplier

By  |  May 25, 2012

E15 reports that the Czech Office for the Protection of Competition (ÚOHS) has cleared ÄŒEZ’s proposed acquisition of Energotrans. Energotrans is a key energy company that ÄŒEZ hopes will help it become a major heat supplier to Prague, as the deal calls for ÄŒEZ acquiring a power plant 40 km from the capital city and nearby land on which a new plant can be built.

The decision has been hotly anticipated, as the acquisition would give ÄŒEZ an even larger share of the Czech power market–some say ÄŒEZ would have a 75 percent share post-merger. Moreover, the case is considered a test to see if ÚOHS would be able to stand up to ÄŒEZ, who is considered to be highly influential without facing appropriate checks on its market power.

Full content: Czech Position

Related content: A Presentation on Assessment of Market Power and Dominance (David S. Evans, Global Economics Group)

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