ACS AI Claims

MADRID (AFP)--Spanish utility Gas Natural SDG SA (GAS.MC) said late Tuesday that the government has given the green light for its takeover of power firm Union Fenosa SA (UNF.MC).

Spain's competition authority, the CNC, approved the move under certain conditions.

Gas Natural said the government has assured the company it wouldn't raise the CNC decision at a cabinet meeting, thus clearing the way for the takeover.

Spain's leading gas supplier announced last summer that it intended to take over Union Fenosa through the purchase of a 45.3% stake of its main shareholder, the construction group Actividades de Construccion y Servicios SA (ACS.MC).

It would then be obliged to launch a takeover bid for the group, the country's third largest power utility, which it valued at EUR16.75 billion.