Brussels, 19/09/2007 (Agence Europe) - On 18 September, the European Commission opened into the planned acquisition of Cumerio of Belgium by Norddeutsche Affinerie AG (NA) of Germany. The Commission's preliminary market investigation found that the proposed transaction raises serious doubts as to its compatibility with the single market and the European Economic Area (EEA) agreement. The Commission now has 90 working days (until 5 February 2008) to decide whether the takeover would significantly impede effective competition within the EEA or a significant part of it.
The initial market investigation created serious doubts about the merger of NA and Cumerio, mainly with regard to the European markets for copper cakes and copper billets, collectively known as copper shapes. The Commission's investigation identified a potential for non-coordinated effects in copper shapes on the basis of the high combined market share of NA and Cumerio on these markets. To analyse these serious concerns in depth, including their effects on competition on the downstream markets, a second phase investigation has now been opened. The decision to open a second phase investigation does not in any way prejudge the outcome of the investigation.
During the first phase of the investigation, NA submitted a set of undertakings aimed at removing the competitive concerns identified by the Commission. However, in light of the market test and the analysis carried out by the Commission, these undertakings proved to be unsatisfactory and insufficient as they failed, in particular, to eliminate the competition concerns identified. Notification of the planned deal: http: //ec.europa.eu/comm/competition/mergers/cases/index/m95.html#m_4781 (ol)