E.on’s move for Ruhrgas hits problems

German utility E.on’s planned takeover of natural gas firm Ruhrgas appeared in doubt in December, as a regional court continued to block the move on anti-trust grounds.

The court in the western city of Dusseldorf upheld an August injunction blocking the E10 billion ($10.3 billion) takeover move, thus overturning the federal government’s decision to approve the deal in July. Several rival energy companies, including US-based TXU and Energie Baden-Wuerttemberg (EBW), filed motions with the court arguing that the takeover would stifle competition in the German market.

E.on, which already controls about 40% of Ruhrgas, said in a statement that it regretted the decision and did not consider court’s argument to be convincing. A final ruling on the acquisition is due in February 2003.

E.on has waged an aggressive campaign of expansion over the past two years. It completed its purchase of UK utility Powergen in July 2002 and acquired the retail business of troubled energy firm TXU Europe in October. That deal is still awaiting approval from the European Commission.

A successful bid for Ruhrgas would make E.on the biggest energy firm in Europe after Electricité de France.