Inside this issue:

  • Competition: Commission carries out inspection of Polish incumbent telecom operator Telekomunikacja Polska S.A.
  • Merger control: Commission approves proposed acquisition of ExxonMobil's Iberian subsidiaries by Galp, subject to conditions
  • Merger control: Commission clears proposed acquisition of M-real's Graphic Paper Business by Sappi
  • Merger control: Commission opens public consultation on review of EC Merger Regulation
  • Merger control (Sweden): Swedish Competition Authority clears acquisition of C More Group AB by TV4 AB

Competition: Commission carries out inspection of Polish incumbent telecom operator Telekomunikacja Polska S.A.

The Commission carried out an unannounced inspection at the premises of Telekomunikacja Polska S.A. ("Telekomunikacja Polska"), the incumbent telecom operator in Poland, on 23 September 2008. The Commission has reason to believe that Telekomunikacja Polska may have abused its dominant position in violation of Article 82 of the EC Treaty. Commission officials were accompanied by officials of the Polish national competition authority. Source: Commission Press Release 30/10/2008

Merger control: Commission approves proposed acquisition of ExxonMobil's Iberian subsidiaries by Galp, subject to conditions

The Commission has cleared, subject to conditions, the proposed acquisition of Esso Portuguesa, Esso Española and a part of ExxonMobil Petroleum and Chemical by Galp Energia ("Galp"), of Portugal. Galp is a vertically integrated energy company that operates in the markets for exploring, producing, and marketing oil and petroleum products principally in the Iberian Peninsula. Esso Portuguesa and Esso Española are active, inter alia, in retail and non-retail sale of motor fuels, liquefied petroleum gas (LPG) and aviation fuels in Portugal and Spain respectively. The part of ExxonMobil Petroleum and Chemical to be acquired is active in lubricants and specialties' businesses in the Iberian Peninsula. All three businesses to be acquired are currently subsidiaries of the U.S. based ExxonMobil Corporation. The Commission identified serious competition concerns in the markets for non-retail sales of diesel, LPG in bottles and in bulk, into-plane aviation fuel and lubricants in Portugal. In order to address the Commission's concerns, Galp offered to divest certain assets and shareholdings in the markets mentioned above in Portugal. In view of these commitments, the Commission concluded that the acquisition will not create or strengthen such a dominant market position that would significantly impede effective competition in the EEA or in any substantial part thereof. Source: Commission Press Release 31/10/2008

Merger control: Commission clears proposed acquisition of M-real's Graphic Paper Business by Sappi

The Commission has cleared the acquisition of Finnish paper manufacturer M-real's Graphic Paper Business by Sappi, of South Africa. Sappi is a vertically integrated paper production company with production facilities in Germany, Austria, the Netherlands and the UK. The M-real business to be acquired is active in the production of graphic fine paper in Switzerland, Germany, Finland and Austria. The Commission concluded that the proposed acquisition will not create or strengthen such a dominant market position that would significantly impede effective competition in the EEA or in any substantial part thereof. Source: Commission Press Release 31/10/2008

Merger control: Commission opens public consultation on review of EC Merger Regulation

The Commission has launched a public consultation on the functioning of the EC Merger Regulation ("ECMR"), which contains the rules for merger control in the European Economic Area (EEA). The consultation is based on provisions in the ECMR, which require the Commission to report to the EU Council of Ministers ("Council") on the functioning of the jurisdictional thresholds and pre-notification referral mechanisms provided for in the ECMR by 1 July 2009, approximately five years after the ECMR entered into force. The Commission's own experience with approximately 160 pre-notification referrals to the Commission and 40 to the Member States since May 2004 indicates that the jurisdictional thresholds and the referral system have worked well in general. Based on the outcome of the consultation, the Commission's own experience and feedback from national competition authorities, the Commission will draft a report to the Council by July 2009. The Commission invites interested parties to submit comments by 1 December 2008. Source: Commission Press Release 28/10/2008

Merger control (Sweden): Swedish Competition Authority clears acquisition of C More Group AB by TV4 AB

The Swedish Competition Authority ("SCA") has cleared the acquisition of C More Group AB ("C More") by TV4 AB ("TV4") after an in-depth investigation. Both companies provide TV channels to the public in Sweden and are active in the market for purchase of broadcasting rights. The SCA's in-depth investigation revealed that, as a result of the acquisition, TV4 would have a strong position in the market for purchase of sports rights, and particularly some attractive key rights. However, the SCA concluded that the acquisition will not create or strengthen such a dominant market position that would significantly impede effective competition in the Swedish market or any substantial part thereof. Source: The Swedish Competition Authority (www.kkv.se)31/10/2008

In addition, kindly note the following merger control decisions by the Commission which are published on the website of the Commission's Directorate-General for Competition:

  • Commission clears proposed acquisition of KVT by King and Capvis
  • Commission clears proposed acquisition of Appliances Components Companies, Bianchi Vending and Finder by Goldman Sachs
  • Commission clears proposed acquisition of Rezidor by Carlson
  • Commission clears proposed acquisition of N&W Global Vending by Barclays and Investcorp
  • Commission clears proposed acquisition of Cherry by ZF
  • Commission clears proposed acquisition of M-real's Graphic Paper Business by Sappi

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