EU clears way for creation of JV by Germany’s SWO and BAG Netz

EPA/CAROLINE SEIDEL/FILE PICTURE

Water vapor billows from the cooling towers at the E.ON power plant in Scholven, Germany.

NG Olching will hold the electricity distribution grid concession transferred by BAG Netz and will participate in the electricity grid tender for the city of Olching.


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The European Commission approved on May 29, under the EU Merger Regulation, the acquisition of joint control over German-based companies Stadtwerke Olching Stromnetz GmbH & Co KG (NG Olching) and Stadtwerke Olching Stromnetz Verwaltungs GmbH (Olching Verwaltungs) by Stadtwerke Olching GmbH (SWO), and Bayernwerk Netz GmbH (BAG Netz), belonging to the E.ON group.

According to the Commission, SWO, jointly controlled by Stadt Olching and Stadtwerke Schwäbisch Hall GmbH, provides electricity, gas, district heating and related services and operates the electricity distribution system in an industrial park in the city of Olching.

BAG Netz develops, operates, and maintains electricity and gas distribution networks. Currently, it holds the electricity distribution grid concession in the rest of the city of Olching.

NG Olching will hold the electricity distribution grid concession transferred by BAG Netz and will participate in the 2019 tender for the concession of electricity distribution grid for all of Olching.

Olching Verwaltungs will manage NG Olching (both the joint venture). The Commission said the EC concluded that the proposed acquisition would raise no competition concerns given the joint venture’s limited activities within the European Economic Area. The transaction was examined under the simplified merger review procedure.

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