On February 26, 2019, the FCO approved RWE AG’s (“RWE”) acquisition of a minority stake of 16.67% in E.ON SE (“E.ON”).[1] The acquisition is part of a complex share and asset swap deal between the two energy companies. Following the share and asset swap, E.ON will focus on the distribution and retail of electricity and gas, whereas RWE will be primarily active in upstream electricity generation and wholesale markets.
The Commission Sends its First Statement of Objects for an Alleged Breach of Merger Commitments
On July 2, 2014, the Commission conditionally cleared Telefónica Deutschland’s acquisition of E-plus, KPN’s German mobile telecommunications business, which combined the third and fourth largest mobile network operators in Germany. The acquisition was characterized as a 4-to-3 merger resulting in three mobile operators of a similar size.[1]
Amerra/Mubadala/Nireus/Selonda
Amerra and Mubadala acquired joint control over Greek aquaculture companies Andromeda, Nireus, and Selonda.
UK Clamps Down On Gun-Jumping
On 12 February 2019, the UK Competition and Markets Authority (CMA) imposed a fine of £200,000 on Electro Rent for gun-jumping.[1] This is the third occasion on which the CMA has penalised a company for breaching “standstill” or “hold-separate” obligations under the UK merger rules, and comes only one day after the Competition Appeal Tribunal (CAT) upheld the CMA’s first gun-jumping fine (imposed on Electro Rent in June 2018 for a separate infringement).[2] The CMA has shown increased readiness to penalise companies for breaching procedural rules, in particular in relation to merger proceedings, consistent with recent action by the European Commission (EC) and national agencies in the EU. The CAT’s judgment strongly endorses the CMA’s approach: “[i]t is a matter of public importance that the merger control process, and the duties it creates, are strictly and conscientiously, observed.”[3]
Amcor/Benis
The Commission raised horizontal concerns regarding the parties’ activities in flexible packaging for food products and for medical use in the EEA. It concluded that Amcor and Bemis were the most significant players in flexible packaging for medical use.
Commission Prohibits Wieland’s Proposed Acquisition of Aurubis Rolled Copper Products and Schwermetall
On February 6, 2019—the same day the Siemens/Alstom decision was adopted—and again following a Phase II investigation, the Commission prohibited German rolled copper products manufacturer Wieland’s proposed acquisition of Aurubis’s rival business and of its 50% stake in the parties’ pre-rolled strip manufacturing joint-venture Schwermetall.[1]
Prohibition of Siemens/Alstom Triggers Debate About Far-reaching Changes to EU Merger Control
On February 6, 2019, the Commission[1] prohibited the then-proposed combination of Siemens AG’s (“Siemens”) mobility business and Alstom S.A. (“Alstom”) which put an end to the parties’ ambition of creating a European Champion in the rail industry.[2] The Financial Times called this Phase 2 investigation “one of the most important test cases for the commission since it assumed powers to vet EU mergers in 1989.”[3]
Ancel/Alsa
On January 29, 2019, the FCA authorized the acquisition of Alsa by Dr. Oetker (Ancel), two manufacturers of dessert mixes,
Gruner + Jahr’s Abandons Renewal of National Geographic License
On January 21, 2019, publishing company Gruner+Jahr (“G+J”) withdrew its notification of the proposed re-acquisition of the license to publish the German edition of “National Geographic” following the FCO expressing competition concerns.[1]
Commission Conditionally Approves Basf/Solvay Creating a “Significant European Player” in the Nylon Compound Market
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.