Decision expected for March 2009 / EWE confident

Cartel Office still examines entry of EnBW

Oldenburg, 22. December 2008. The German Federal Cartel Office continues to examine the intended partnership of EnBW Energie Baden-Württemberg AG and Oldenburg based EWE AG. This has been disclosed by the Office today in an intermediate notice to both companies. Both companies before agreed with the extended examination period. Instead of January 8th 2009 as first intended the Cartel Office now announced its decision for March 9th. The reason for this are concerns of the Cartel Office regarding a concentration on regional gas markets in Eastern Germany which could occur through the merger. Such notice is not uncommon at this stage of procedure, so as to inform the parties concerned about the current development of the examination.

Due to the very complex circumstances and various singular interests of the directly and indirectly affected companies it was to be expected that this examination would not be a standard procedure. „We are talking about one of the biggest deals of the past couple of years in the energy sector", explains EWE spokesperson Daniel Waschow. For the forthcoming discussions with the Cartel Office they would be confident to reach a solution that suits all parties involved. „We stick to our belief that the entry of EnBW would be beneficial for the German energy market", said the spokesperson.

EWE’s shareholders, 21 municipialities in Northwest Germany, announced in July to conclude a strategic partnership with EnBW, in which EnBW should take a 26% stake in EWE. In September the companies presented the merger project for examination at the cartel Office. The Office initially planned to bring forward a decision at the beginning of 2009.