The commission’s investigation has found that the proposed transaction would not impede competition in the European Economic Area (EEA) or any substantial part of it.
As reported, the transaction gives rise to vertically affected markets. The market for the supply of district heat is an affected market in relation to the upstream market for the supply of gas and the market for maintenance and repair of equipment.
The market for distribution of electricity is also vertically affected in relation to the upstream markets of generation and wholesale supply of electricity, maintenance and repair technology, provision of ancillary services and the downstream retail supply of electricity.
The commission’s investigation, however, found that the proposed merger would not close off the market to competition and a number of competitors would remain due to the low market shares in the related upstream/downstream markets. The commission found that the proposed concentration would not give rise to any competition concerns on these markets.
IPO operates a lignite-powered plant in Opatovice, which sells both electricity and heat to customers in the Czech Republic. City of Prague is the municipality of Prague, Czech Republic. It is indirectly active in the generation and wholesale supply of electricity, retail supply and distribution of electricity.
