DESFA deal with Azeris fettered by EU Commission

The Commission has begun an in depth examination as to the whether the sale is in accord with EU legislation concerning concentration. This will take at least 90 days, meaning it will be completed by 23 March 2015, freezing the sale until then.

The Commission believes the sale could lower competition in the wholesale gas market in Greece, as it might allow the merged company to place impediments against Socar competitors as concerns access to the gas grid.

The Commission will ascertain whether the sale of DESFA, part of the state's privatization program violates competition rules, but in no way is this a foregone conclusion, as a relevant Commission announcement states.

The initial inquiries by the Commission showed that Socar could, by controlling the distribution grid, discreetly act against other providers, lowering their gas distribution.

The deal for the sale of DESFA was signed on 21 December 2013, along with a deal for the management of the firm after the transfer of stocks. The price was €400 million for the sale of 66% of the company, 31% of which would go to HRADF and 35% for Hellenic Petroleum.