The European Commission has cleared here on Wednesday the proposed acquisition by E.ON AG of Germany from Electrabel S.A./N.V. of Belgium of two power plants and drawing rights.

The Commission concluded that the transaction would not significantly impede effective competition in the EEA or any substantial part of it.

E.ON is active in the generation and supply of electricity and natural gas in several European countries. The acquired power plants and the electricity generation capacity underlying the acquired drawing rights are owned by Electrabel, a company of GDF Suez SA, an international industrial and services group active in electricity, natural gas, energy services, water and waste management.

The Commission's examination of the deal showed that the horizontal overlaps between the activities of E.ON and the acquired assets are limited and that the transaction would not raise competition concerns as it only leads to minor market share additions to E.ON's current modest position on the Belgian and Dutch markets.

The transaction is linked to Electrabel's acquisition from E.ON of power generation assets and drawing rights to electricity capacity in Germany which result from the undertakings given by E.ON to divest power generation assets and electricity drawing rights to resolve competition problems in Germany following the Commission's decision of November 2008.

This decision rendered legally binding commitments offered by E.ON to address concerns raised in the course of an investigation under EC Treaty rules prohibiting the abuse of a dominant market position.