Gas Natural cleared to buy Fenosa's Mexican assets

MADRID, Oct 8 (Reuters) - Spain's Gas Natural (GAS.MC) has been authorised by Mexican competition regulator COFECO to acquire two power stations in the country operated by its bid target Union Fenosa UNF.MC, the gas group said Wednesday.

The acquisition of the two combined-cycle installations is conditional on Gas Natural receiving Spanish competition authority clearance for its planned 16.7 billion euro ($22.76 billion) friendly bid for Fenosa, a spokeswoman for the Catalan gas group said.

The new group would have 3,724 Megawatts of installed generation capacity in Mexico, consolidating its position as the country's second largest private electricity generator.

Mexico's largest independent generator is another Spanish company, Iberdrola (IBE.MC)

Gas Natural acquired five Mexican power plants valued at $1.45 billion from French state controlled utility EDF (EDF.PA) in October 2007. ($1=.7338 euros) (Reporting by Jonathan Gleave; Editing by Greg Mahlich)