Advised Enel SpA During EC Review of Sloveske Elektrane Acquisition by EPH

In July 2016, the European Commission (“EC”) approved the transaction by which EPH, a Slovakian energy Group, acquired a controlling share in Sloveske Elektrane (“SE”) from Enel SpA for €375 million. SE is the successor to the former state monopoly electricity generation company which was acquired by Enel in 2006.

Compass Lexecon advised Enel during the investigation. Both SE and EPH have activities upstream (in electricity generation) and downstream (in retail). Drawing on the expertise of Compass Lexecon’s energy practice, we analyzed potential vertical foreclosure concerns, demonstrating that the Slovak market is increasingly interconnected with neighboring markets and therefore SE’s significant share of generation in Slovakia did not provide it with an ability to engage in input foreclosure. In addition, we analyzed horizontal effects in the retail market.

The Compass Lexecon team included Fabien Roques, Lorenzo Coppi, Gianmarco Calanchi, Andy Parkinson, Michele Avagliano, Yves Le Thieis, Rashid Muhamedrahimov, and Thibaut De Bernard.