Solbes open to power deals if Spanish keep control

MADRID, April 21 (Reuters) - Spanish Economy Minister Pedro Solbes is open to the merger of Spanish energy firms with foreign competitors, so long as the combined firms are managed from Spain, according to a newspaper interview.

Solbes told Spain's La Vanguardia that his greatest concern for the Spanish energy sector, which firms such as France's EDF (EDF.PA) are keen to enter, was the guarantee of power supply for Spain.

In second place, he said, was ensuring a competitive market.

"In third place, although at a greater distance, that the decision making centres are in Spain as far as possible, even though the companies have foreign capital," Solbes told La Vanguardia in the interview published on Sunday.

Solbes comments follow talks between French firm EDF (EDF.PA) and Spanish construction company ACS (ACS.MC) over a possible bid for Iberdrola (IBE.MC), Spain's biggest power utility.

Solbes said he was not worried by the prospect of power sector mergers.

"The size of companies does not pose a problem to me, so long as they are compatible with competition," Solbes told the newspaper. "We will analyse any project that may be put forward, and it will be competition authorities who say if it is feasible and in what conditions."

Solbes has in the past said Iberdrola should not be broken up. Spanish President Jose Luis Rodriguez Zapatero has said he sees favourable conditions for French power firms to enter the Spanish market.

An EDF bid would require backing from the Spanish and French governments. (Editing by Will Waterman)