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Thailand blocks sale of French-owned power producer

AFP  |  Bangkok 

Thailand's said Thursday it would block PTT Group's multibillion-dollar acquisition of a company owned by French on grounds that it could create a monopoly in some areas.

signed a deal with Thai group (GPSC), part of state-owned PTT, in June to sell a 69.1 per cent stake in Glow, an independent listed on the

The sale would have been worth an estimated USD 3 billion.

But Narupat Amornkosit, of Thailand's (ERC), said in a statement that a unanimous decision was made to block the sale.

"After the ERC discussed, it found that the acquisition might lead to a monopoly within the producing companies in some industrial areas, which would reduce competition," Narupat said.

GPSC is "exploring new alternatives" following the decision, in a statement.

The firm also insisted that it "strictly and completely followed legal requirements," and that GPSC would discuss the development with

An ERC told AFP the company could also appeal against the decision.

The planned sale of Engie's stake in was a part of the French energy giant's strategy to reduce its carbon footprint.

Faced with the upheaval of the European energy sector, Engie hoped to shift to renewable energies and energy services, which would have been regulated -- therefore making it less susceptible to market shifts.

The group has a sizeable presence in via its stake in Glow, which operates in and with 800 employees.

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Thu, October 11 2018. 18:10 IST