Shares in French utilities Suez and Gaz de France (GDF) edged lower today after the European Commission said their planned merger raised competition problems.
On Saturday, the commission said preliminary findings had concluded that a tie-up between the two companies would cause concerns about competition in the Belgian and French energy markets.
Both Suez and GDF were among the main losers on France's blue-chip CAC 40 index, with GDF down 0.8 per cent at €28.59 earlier this morning and Suez off 1 per cent at €32.62.
A GDF spokeswoman said there was nothing new in the Commission's preliminary view that the company did not know already, while a spokesman for Suez said over the weekend that the company needed time to study the EC's documents.
Both Suez and GDF have said they are willing to sell their stakes in electricity company SPE, electricity network Elia and part of their gas assets to gain European Union approval for their merger.
Suez could also be forced to sell its 57 per cent stake in Belgian gas distribution firm Distrigaz and an equal stake in gas transmission company Fluxys, also based in Belgium.
French Finance Minister Thierry Breton had said he expected Brussels to air preliminary objections.
The merger was partly brokered by the French government earlier this year to fend off the threat of a takeover of Suez by Italian utility Enel, although some French politicians remain opposed to the GDF deal.