MADRID (Dow Jones)--Spain's government plans to maintain the conditions it imposed on the takeover of electricity utility Endesa SA (ELE.MC) by Italy's Enel SpA (EN) and Spain's Acciona SA (ANA.MC), a person close to the situation said Tuesday.
By not removing those conditions -including the requirement to keep Endesa as a separate and independent company headquartered in Spain -before the Jan. 10 deadline set by the European Commission, Spain's government is setting the stage for another high-profile clash with the European Union's executive branch.
Last year, Spain's Industry Ministry cut to seven the 12 conditions originally imposed on the deal by the country's energy regulator, following earlier protests from the commission who want to see all the conditions lifted. Spain's government said then it would not lift the remaining conditions.
The commission has said Spain's restrictions on the deal violate E.U. rules ensuring the free movement of capital within the bloc's borders.