Brussels, 24/08/2001 (Agence Europe) - The German company Südzucker will have to wait until the European Commission has given its final verdict on its planned acquisition of the French sugar company, Saint-Louis Sucre, before it can go ahead and complete the operation. On Thursday, the European Commission decided to carry out a detailed four-month review (the buffer date being 8 January 2002), before deciding whether to clear the operation or not. This decision is motivated by the indirect impact that the disappearance of a potential competitor could have on the sugar market segments in Belgium and southern Germany, market segments where Saint Louis is not, however, active. A Commission spokesman explained that this case of authorisation (given 2 February) should be seen subject to commitments, and the acquisition of joint control of the German electricity company, Energie Bade-Wurtemberg AG (EnBW), by Electricité de France (EDF) and Zweckerband Oberschwäbische Elektrizitätswere (OEW). EUROPE recalls that, in this specific case, the cross-border agreements on energy supply had direct consequences on the electricity market in Germany, and more especially in Bade-Wurtemberg.
The Commission considers that the German group enjoys a position of force in all core sugar market segments in Belgium and southern Germany. Its initial inquiry allowed it to note that, before the merger, Südzucker already held a dominant position on the Belgian and German markets with a 70-90% market share. The Commission will examine whether the eviction of Saint-Louis Sucre as a potential competitor will increase Südzucker's market predominance. The review should also take into account special market conditions found on a market that is mainly regulated within the Community by the common market organisation for sugar.
Announced early this summer, the acquisition of Saint-Louis will mainly allow the Mannheim group, the world leader in this sector, to penetrate the French market. The activities of the Südzucker group include the production and distribution of sugar, sweeteners, molasses, food additives, ice cream and frozen foods. Südzucker is mainly active in Germany (in the south and east of the country especially), in Belgium, Austria and in Eastern Europe. Saint-Louis Sucre essentially focuses on the production and distribution of sugar, molasses and alcohol, and operates mainly in France and Eastern Europe.