EC Raises Concerns Over Cross-Border Acquisition Of Cargo Firm

by Ulrika Lomas, for LawAndTax-News.com, Brussels

04 April 2006

The European Commission announced on Friday that it has opened a detailed investigation under the EU Merger Regulation into Sea-Invest’s acquisition of joint control in EMO-EKOM.

Sea Invest is a Belgian cargo handling company active in a number of ports in Belgium, France, Germany and South Africa. Among others, Sea-Invest has sole control over the ABT terminal in Antwerp which provides cargo handling services for coal, iron ore and other dry bulk.

EMO-EKOM, meanwhile, is a Dutch joint-venture providing cargo handling services for coal and iron ore in the port of Rotterdam.

The Commission’s initial market investigation found that the proposed transaction gives rise to competition concerns on the market for coal and iron ore terminal services at the ports of Antwerp, Rotterdam and Amsterdam, including Zeeland, the so called ARA range. A decision to open an in-depth inquiry does not prejudge the final result of the investigation.

The Commission will now make a final decision before August 18 on whether the concentration would significantly impede effective competition within the European Economic Area (EEA), or a significant part of it.

“It is crucial that the Commission carefully analyses the impact of this merger in view of increasing demand for cargo handling services for coal, limited customer choice and a risk of price increases," explained Competition Commissioner, Neelie Kroes.

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