Brussels, 28/05/2001 (Agence Europe) - The European Commission had approved restructuring aid totalling around EUR 448 million (2,938 million FF) for the French company Sernam (Service National des Messageries), subsidiary of the state-owned railway company SNCF, which provides traditional and express delivery services for parcels and equipment, as well as freight and logistics. The aid will cover Sernam's losses covered by SNCF (EUR 144 million) and restructuring costs after it has been sold to Geodis (EUR 304 million).
In a press release, the Commission signalled that it considers the aid to be compatible with the Treaty and with the guidelines for rescuing and restructuring firms in difficulty since: 1) the restructuring plan should mean a return to viability within four years of the company being sold to Geodis, 2) "adverse effects on competitors are avoided by the planned reduction in capacity on the part of Sernam in terms of the number of depots and employees at a time when the various segments of the delivery and logistics market are growing rapidly", 3) "'aid is limited to the minimum acceptable to the buyer, a competitive process was followed in selling the company, and Geodis itself will make a significant contribution to the restructuring", 4) "the French government will submit an annual report on its progress in implementing the restructuring plan", 5) Sernam has made losses of EUR 7.6 million a month since it was created as a separate entity in February 2000.