Recent developments in EU Merger Control

Transcription

1 Recent developments in EU Merger Control IICJ Competition Law Conference 4 November 2014 Julia Brockhoff Deputy Head of Unit, Merger Case Support and Policy DG Competition, European Commission All views expressed are strictly personal and do not necessarily reflect the official position of the European Commission

2 Key recent trends 1. Overview 2. Merger control in commodities markets 3. Procedures The simplification package 4. Policy: The White Paper 2

3 Yearly notifications *For 2014, January to September included. 3

4 Interventions 4

5 Prohibition M.6570 UPS /TNT EXPRESS (2013) M.6663 RYANAIR / AER LINGUS III (2013) Art. 8(2) (conditions & obligations) M.6576 MUNKSJÖ / AHLSTROM (2013) M.6690 SYNIVERSE / MACH (2013) M.6905 INEOS / SOLVAY /JV (2014) M.6992 HUTCHISON 3G UK / TELEFONICA IRELAND (2014) M.7000 LIBERTY GLOBAL / ZIGGO (2014) M.7018 TELEFONICA DEUTSCHLAND / E-PLUS (2014) M.7061 HUNTSMAN CORPORATION / EQUITY INTERESTS HELD BY ROCKWOOD HOLDINGS (2014) Art. 8(1) M.6314 TELEFONICA UK / VODAFONE UK / EVERYTHING EVERYWHERE / JV (2013) M.6360 NYNAS / SHELL / HARBURG REFINERY (2013) M.6796 AEGEAN / OLYMPIC II (2013) M.7009 HOLCIM / CEMEX WEST (2014) M.7054 CEMEX / HOLCIM ASSETS (2014) Significant cases in 2013/2014 Art.6(2) (conditions & obligations) M.6607 US AIRWAYS / AMERICAN AIRLINES (2013) M.6722 FRIESLANDCAMPINA / ZIJERVELD & VELDHUYZEN AND DEN HOLLANDER (2013) M.6756 NORSK HYDRO / ORKLA / JV (2013) M.6813 MCCAIN FOODS GROUP / LUTOSA BUSINESS (2013) M.6844 GE / AVIO (2013) M.6850 MARINE HARVEST / MORPOL (2013) M.6851 BAXTER INTERNATIONAL / GAMBRO (2013) M.6857 CRANE CO / MEI GROUP (2013) M.6924 REFRESCO GROUP / PRIDE FOODS (2013) M.6944 THERMO FISHER SCIENTIFIC / LIFE TECHNOLOGIES (2013) M.7021 SWISSPORT / SERVISAIR (2013) M.7104 CROWN HOLDINGS / MIVISA (2014) M.7115 KURARAY / GLSV BUSINESS (2014) M.7155 SSAB / RAUTARUUKKI (2014) M.7174 FEDERAL-MOGUL CORPORATION / HONEYWELL FRICTION MATERIALS (2014) M.7220 CHIQUITA BRANDS INTERNATIONAL / FYFFES (2014) M.7268 CSAV / HGV / KÜHNE MARITIME / HAPAG-LLOYD AG (2014) Art. 14(2) M.7184 MARINE HARVEST / MORPOL Abandonments (in phase II) M.6362 CIN/TIRRENIA BUSINESS BRANCH (2013) 5

6 Mergers in commodities markets - cases Outokumpu/Inoxum Creation of a new European market leader for stainless steel made possible through divestiture of Terni plant Ineos/Solvay Joint venture between Europe's No 1 and No 2 PVC suppliers cleared subject to significant divestiture package Nynas/Shell Acquisition of specialty oils refinery by only European rival authorised against plant closure counterfactual 6

7 Mergers in commodities markets - key points Features Mature, concentrated markets Entry unlikely Limited importance of imports Claims of overcapacities by industry Objectives Take into account structural characteristics of these markets in the competitive assessment while preserving competition upstream to protect customers in downstream markets Application of merger control rules as in other industries Serious competition problems require far-reaching divestiture remedies Serious, case-specific analysis of efficiencies Counterfactual analysis/failing-firm defence may apply if absent the merger the firm/assets would exit the market 7

8 Simplification of procedures Extension of simplified procedure Increased market share thresholds: 20% for horizontal overlaps, 30% for vertical relationships New criterion based on small increases in market share Reduction of information requirements for all cases Introduction of super-simplified procedure More targeted/accelerated pre-notification Pre-notification unnecessary if no reportable markets Increased use of waivers 8

9 Practical implications of simplification Significant shift of cases from 'normal' to simplified procedure 10% increase in number of cases under simplified procedure Reduction in length of pre-notification periods A number of cases notified without pre-notification Some cases with pre-notification of 1 week or less More focussed pre-notification Further simplification suggested in the White Paper 9

10 The White Paper on EU Merger Reform Stocktaking: EU merger control 10 years after the 2004 reform Stepping up coherence and convergence at EU and Member State levels Strengthening and improving the Merger Regulation: 1. Enable COM to review non-controlling minority shareholdings 2. Streamline the case referral system 3. Technical improvements & further streamlining 10

11 Minority shareholdings How to design the right system? Objective: striking the right balance with 3 principles: 1. Catch the (relatively small) number of potentially anticompetitive transactions 2. Avoid unnecessary administrative burden 3. Fit with the existing system of merger control at EU and national levels 11

12 Minority shareholdings: "Targeted transparency system" Targeted jurisdiction: limited to potentially problematic transactions only transactions creating a "competitively significant link": o in competitors or vertically related companies, and o with certain level of influence through o o Shareholding above a higher threshold (e.g %), or Lower shareholding (bw. 5% and 15/20%) but with additional rights: board representation information rights veto rights below control level Estimated cases/year with EU dimension 11

13 1. Short information notice Minority shareholdings: How will the system work? 2. COM decides whether to pick the case or not - if YES -> Full notification (Form CO) and usual merger procedure -> Stand-still obligation until decision issued - if NOT-> no formal approval decision issued -> parties can implement the deal -> possibly after a waiting period (15 days) 3. NCAs may request referral within a short period (15 days) 4. Voluntary notifications possible (strong request of stakeholders - legal certainty ) 5. COM can pick the case within a prescription period (4 months), even if the deal is already implemented (possibility of interim measures) 13

14 Streamlining the referral system & other technical improvements Referrals No more "Form RS" for Art. 4(5) referrals EU-wide jurisdiction for COM in case of Art. 22 referrals Right to request or veto referral only for MS where transaction in notifiable under national law Other simplification and streamlining Exclude extra-eea joint ventures from EU merger control Possible extension of "targeted transparency system" to certain categories of unproblematic mergers (e.g. nooverlap cases) 14