The Commission’s Notice on remedies states that waivers “will very rarely be relevant for divestiture commitments” and since divestiture commitments are required to be implemented in a short time after the decision, it is “very unlikely” that sufficient changes in market circumstances will have occurred for the Commission to accept any modifications of the commitments.[1] In May 2020, the Commission waived commitments given to secure merger control approval in two cases.
The French Competition Authority (“FCA”) Accepts Fix-it-First Remedy and Unprecedented Behavioral Commitments in a Major Overseas Retail Deal
On May 26, 2020, the FCA conditionally approved Bernard Hayot Group’s €219 million acquisition of the Vindémia Group—one of the largest deals in French overseas territories ever reviewed by the FCA.[1] Further to an on-site investigation, the FCA cleared the transaction in Phase I, subject to a fix-it-first remedy and behavioral commitments.
The ICA Opens Phase II Investigation Into Intesa San Paolo/Ubi Merger
On May 11, 2020, the Italian Competition Authority (the “ICA”) adopted a decision to open an in-depth (“Phase II”) investigation into the proposed concentration between Intesa SanPaolo S.p.A. (“ISP”) and UBI Banca – Unione di Banche Italiane S.p.A. (“UBI”; the “Decision”).[1]
Aurubis’ Acquisition of Metallo Unconditionally Approved Despite Initial Buyer Power Objections
On May 4, 2020, the Commission unconditionally approved Aurubis’ proposed acquisition of Metallo, having issued formal objections just a few months earlier, in February 2020.[1] The Aurubis/Metallo decision is noteworthy for two reasons. First, in the last five years, since Margrethe Vestager became Commissioner for Competition, only one other transaction has been unconditionally cleared after the Commission had sent a Statement of Objections to the companies involved, namely Tele2 NL/T-Mobile NL in 2018.[2] Second, in Aurubis/ Metallo, the Commission’s concerns were based on buyer power, a theory of harm that has been rarely applied in the Commission’s merger review practice.
FCO Clears Acquisition of Vossloh Locomotives by CRRC Zhuzou Locomotives
On April 27, 2020, after an in-depth review, the FCO cleared the acquisition of Vossloh Locomotives GmbH Kiel (“Vossloh”) by CRRC Zhuzhou Locomotives Co., Ltd. (“CRRC”).[1] German shunter manufacturer Vossloh is the market leader in Europe with a market share of 40 to 50 percent. CRRC is a state-owned Chinese company and the world’s largest manufacturer of rolling stock, selling its products predominantly in China.
Mylan’s Tie-up With Pfizer’s Upjohn Division Approved Subject to Remedies
On April 22, 2020, the Commission conditionally approved the joint venture between Mylan and Upjohn, Pfizer’s off-patent branded and generic medicines division, following a Phase I review.[1] The transaction follows a recent stream of large pharma and healthcare transactions approved by the Commission, including the unconditional clearance of Bristol-Myers Squibb’s acquisition of Celgene,[2] and conditional clearances of AbbVie’s acquisition of Allergan,[3] and GSK’s acquisition of Pfizer’s Consumer Health Business.[4]
Ecolab Inc. v Competition and Markets Authority
On 21 April 2020, the CAT dismissed Ecolab’s appeal against the CMA’s decision of 8 October 2019 that (i) Ecolab’s completed acquisition of the Holchem Group resulted in a SLC in the supply of formulated cleaning chemicals, and (ii) the most effective and proportionate remedy was for Ecolab to divest the overlapping Holchem business to an approved purchaser.
CAT Confirms High Threshold for Review of CMA Merger Decisions
CMA merger decisions are subject to judicial review by the Competition Appeal Tribunal (CAT). Challenges to the CMA’s substantive decision-making have, however, generally been unsuccessful. Although the CAT has been willing to intervene on matters of procedural fairness and errors of law, as recent decisions confirm, the CAT is reluctant to intervene in the CMA’s assessment of competitive effects and identification of remedies.
The Minister of Economy to Veto the Acquisition of Photonis by Teledyne
On March 31, 2020, French Economy Minister Bruno Le Maire verbally notified US defense manufacturer Teledyne that it would block U.S. conglomerate Teledyne’s proposed acquisition of French night vision startup Photonis.[1] This will be the first use by the Economy Ministry of its veto powers over transactions in strategic industries under the French foreign investment control regime.
Commission Conditionally Approves Joint Venture Between Telecom Italia and Vodafone to Share Telecoms Towers
On March 6, 2020, the Commission approved Telecom Italia and Vodafone’s acquisition of joint control over INWIT, which will combine the companies’ 22,000 telecommunication towers in Italy.[1] The approval was obtained during Phase I and is conditioned on third-party access to the infrastructure.