(RTTNews) - The European Commission has cleared under the EU Merger Regulation the proposed acquisition of joint control over the Angolan company Angola LNG (the joint venture) by BP of the UK, Chevron Global Energy of the U.S., Eni of Italy, Sociedade Nacional de Combustíveis de Angola (Sonangol) of Angola and Total of France.
The joint venture will be active in the production and the worldwide supply of liquefied natural gas (LNG) in Angola LNG. The Commission found that the transaction would not raise competition concerns because of the joint venture's moderate anticipated market share, the presence of a number of credible competitors in the market concerned and competitors' unchanged ability to access re-gasification terminals.
The joint venture would transform natural gas, obtained as a by-product from oil production and transported along pipelines to its liquefaction plant in Angola, into LNG. The LNG would then be sold to customers around the world for re-gasification.
The parties' activities overlap in the market for the wholesale supply of LNG in the European Economic Area (EEA). Given the joint venture's moderate anticipated market share and the presence of a number of credible competitors, the Commission found that the joint venture and its parent companies will continue to face sufficient competitive constraints on the market for the wholesale supply of LNG.
Although three of the parent companies (Total, Eni and BP) hold capacity rights in re-gasification terminals in EEA, they will not be able to shut out third parties from accessing them because EU law ensures third party access to gas import infrastructures, including re-gasification terminals. Thus, the creation of the joint venture does not lead to any change as regards competitors' ability to access gas import infrastructures.
The Commission therefore concluded that the transaction would not impede effective competition in the EEA or any substantial part of it.
BP, Chevron, Eni and Total operate worldwide in the exploration, production refining and marketing of oil and gas products, while Sonangol is the sole concessionaire for the exploration of oil and gas on the subsoil and continental shelf of Angola.
For comments and feedback: contact firstname.lastname@example.org
Copyright(c) 2012 RTTNews.com. All Rights Reserved
Copyright 2012 NoticiasFinancieras/Grupo de Diarios America. All Rights Reserved.
(Originally published May 16, 2012, by RTT News.)