U.S. News

E.On Submitting Sealed Bid for Spain's Endesa


German energy company E.On AG said Friday it was submitting a sealed bid for Spain's Endesa SA, after its offer worth about 36.5 billion euros ($47.6 billion) was blocked by legal hurdles for several months.

E.On's bid for Madrid-based Endesa, Spain's largest utility by market value, is part of a bidding battle against Spanish company Gas Natural SA.

Spain's stock market regulator, CNMV, had lifted the suspensions of the two bids for Endesa and invited the companies to submit sealed bids by Feb. 2, E.On said.

"We are delighted that Endesa's shareholders will very soon have the opportunity to decide on our offer, and remain confident that the transaction will reach a successful conclusion," E.On CEO Wulf Bernotat said in a statement. "We believe that we offer very attractive terms for all Endesa's shareholders."

The company added that E.On has a "clear strategy for Endesa which guarantees that the company will remain intact after the transaction."

Spain's Socialist government had backed the Gas Natural bid, worth around 24 billion euros ($31.3 billion), arguing that it is in the national interest to have a strong global energy company owned by Spaniards.