EU Clears Acquisition Of OTP Garancia By Groupama

by Carla Johnson, Investors Offshore.com, London

16 April 2008

Under the EU Merger Regulation, the European Commission has cleared the proposed acquisition of the Hungarian insurance company OTP Garancia by the French insurance and banking group Groupama, it announced this week.

The Commission concluded that the operation would not significantly impede effective competition in the European Economic Area (EEA) or in any substantial part of it.

Groupama provides insurance related services and banking activities across the EU. OTP Garancia is active in life and non-life insurance, mainly in Hungary and, to a lesser extent, in Romania.

The Commission's investigation focused on the underwriting of non-life insurance products in Hungary and, more specifically, on casualty-accident and fire insurance, where the main overlaps in the activities of the parties can be found.

Following its market investigation, the Commission concluded that in view of the parties' limited presence in these markets, the absence of significant barriers to entry and the presence of strong and internationally active competitors in the relevant markets, no competition concerns would arise as a result of the proposed transaction.

Recommended