Brussels, 04/01/2001 (Agence Europe) - As we have already reported (see yesterday's EUROPE, p. 12), the Commission has decided that the measures taken by the Portuguese government against the proposed takeover bid by Secil Companhia Geral de Cal e Cimentos SA and Holderbank for the company Cimpor Cimentos de Portugal SGPS were incompatible with EU competition law.
According to Article 21 of the Merger Regulation, Member States can take appropriate measures to protect "legitimate interests" such as public security, plurality of the media and prudential rules. Any other public interests must be communicated to the Commission by the Member State. The Commission will then determine whether it is compatible with Community law. In the case in question, the Commission finds that in blocking the proposed acquisition, the Portuguese government has breached its obligations under Article 21 of the Merger Regulation on two counts. Firstly, the ban did not protect the interests foreseen in Article 21 and secondly, Portugal did not communicate to the Commission any other public interests they wished to safeguard. What is more, no valid arguments have been supplied by Portugal since then despite the Commission's requests. In the light of the facts, the Commission decided to rule against the Portuguese measures and the Portuguese government is under an obligation to take the necessary measures to comply with Community law. Back in July, Commissioner Monti had expressed his concern at the position being taken by the Portuguese government over this issue (see EUROPE of 13 July, p. 13).