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Image header Agence Europe
Europe Daily Bulletin No. 8381
Contents Publication in full By article 23 / 42
GENERAL NEWS / (eu) eu/competition

Schneider introduces compensation measures against Commission

Brussels, 17/01/2003 (Agence Europe) - French electrical equipment producer Schneider Electric intends to seek compensation from the European Commission at the European court of Justice in Luxembourg. The Commission opposed the merger between Schneider and Legrand in October 2001 and demanded that Schneider sell the Legrand shares it had almost totally bought up. Schneider then appealed to the ECJ and won its case on 22 October (see EUROPE 23 October p 10). The Court had judged that the economic analysis carried out by the Commission contained mistakes and omissions that made is case unconvincing. Schneider then wanted to carry out the deal again but Legrand was strictly opposed to the new merger, which would have seen much asset stripping from it own activities. The EJC did not oppose the significant problems of competition that the deal would create in France and Schneider was obliged to take this into account in its new attempted merger. The deal has definitively been abandoned and Schneider is claiming damages for billions of Euro. Amelia Torres, spokeswoman for Commissioner Monti indicated that the Commission had not yet received notification of the proceedings and declared that they were convinced that they had examined the case with an open mind and they would have to wait and see what happened.

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