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Image header Agence Europe
Europe Daily Bulletin No. 8797
Contents Publication in full By article 13 / 29
GENERAL NEWS / (eu) eu/competition

In-depth inquiry into Austrian plans to create joint fertiliser wholesale specialist

Brussels, 30/09/2004 (Agence Europe) - The Commission has opened an in-depth inquiry into plans to set up a joint venture (Inter-Fert) between the Austrian companies RWA Raiffesen-Ware Austria AG (RWA) and AMI Agro Linz Melamine International (AMI). It believes that the new entity, which will bring together Austria's largest fertiliser producer (AMI) and the main agricultural wholesaler (RWA), could reinforce a dominant position on two regional fertiliser markets, Austria and Bavaria. In Austria, the joint company will, on the one hand, remove the competition between AMI and RWA in wholesale, and on the other, it could benefit from preferential access to AMI's production, especially the "Linzer Ware" brand. This would weaken wholesale competitors, and have an impact on retailers and farmers. In Bavaria too,, the creation of Inter-Fert could have consequences on the local fertiliser distribution market. The company BayWa, which is already in a leading position according to the Commission's preliminary inquiry, would see its position reinforced by its 50% stake in RWA. As Bavarian farmers buy a considerable proportion of their fertiliser in Austria, the project could block the market on either side of the border. The Commission considers that the current offers do not ensure sufficient access to fertiliser for wholesalers and retailers, and is awaiting new commitments from the companies in question. The second phase examination may take four months, and will probably end no later than 14 February 2005, states the Commission.

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