Vj-137/1997/8
COMPAGNIE GENERALE DES EAUX - BERLINER WASSER BETRIEBEN / METROPOLITAN SEWERAGE COMPANY (FŐVÁROSI CSATORNÁZÁSI MŰVEK)
The local government of Budapest sold 25 per cent and one share of the Metropolitan Sewerage Company, to the consortium of the Compagnie Generale des Eaux (hereinafter: CGE) and the Berliner Wasser Betrieben (hereinafter: BWB). According to the contract concluded by the parties, four members of the board of directors would be appointed by the consortium and only the remaining three would be selected by the local government after the transaction. Under the competition act acquisition of the majority of voting rights qualifies a concentration and considering the fact that the joint net turnover exceeded the notification threshold, 10 billion HUF, the parties were obliged to request a preliminary authorisation from the Office of Economic Competition.
CGE, domiciled in Paris, is a water utility company which acts widely in the world, inter alia, on the Hungarian market where holds controlling rights of 12 undertakings. However CGE is not active on the Budapest water management market.
BWB is a German public law organisation, dealing with water supply and sewerage management activities in Berlin and around. It holds only a representative office in Budapest and it has not realised any income there.
The Metropolitan Sewerage public limited company is a 100 per cent property of the local government dealing with sewerage public utility activities, mainly in the territory of Budapest.
The Competition Council authorised the transaction that was justified as follows: none of the parties of the consortium was active on the Budapest market, as relevant geographic market, and under the exclusive rights of the Metropolitan Sewerage Company, the parties of the consortium cannot enter the relevant market in the future. There were not found any vertical relations between the parties
November 18, 1997. Budapest
dr. Bodócsi András sk. előadó
Fógel Jánosné dr. sk.
dr. Kállai Mária sk.
Szabó Györgyi