Decision Nº M/03/013 from Competition and Consumer Protection Commission, 2003-06-19

CourtCompetition and Consumer Protection Commission (Ire)
Submitted Date29 May 2003
Date19 June 2003
Decision Date19 June 2003
PartiesRosenlew Group,3i Group Investments
StatusCleared (Phase 1)
Decision NumberM/03/013
Determination of the Competition Authority
Determination No. M/03/013 of the Competition Authority, dated 19 June 2003
Notification No. M/03/013 – Acquisition of Rosenlew Group by 3i Group
Investments LP from the UPM-Kymmene Group
Introduction
1. On 29 May 2003 the Competition Authority, in accordance with Section 18(1) of
the Competition Act, 2002 (“the Act”) was notified, on a mandatory basis, of a
proposal whereby 3i Group Investments LP through subsidiaries companies, and
other persons, would acquire a number of companies (the Rosenlew Group) from
the UPM-Kymmene Group.
The Parties
2. 3i Group Investments LP (3i) is a member of the 3i Group, and is a wholly
owned subsidiary of 3i plc, a publicly quoted company. Its principle activity is as
an investment institution. In 2002, the 3i Group achieved turnover in Ireland of
[…]. 3i jointly controls Condepols, a Spanish company active in the sale of
Flexible Intermediate Bulk Containers (FIBCs). Condepols sales of FIBCs in
Ireland in 2002 were […]. 3i also holds interests in BulkBag Ltd and Structure-
Flex Ltd, UK companies also involved in the sale of FIBCs.
3. The Rosenlew Group is owned by the UPM-Kymmene Group. The Rosenlew
Group is also involved in the sale of FIBCs. The Rosenlew Group’s sales of
FIBCs in Ireland were […] in 2002.
Analysis
4. FIBCs are woven polypropylene sacks used to transport free flowing dry goods
ranging between approximately 500 to 1,300 kg in weight. The parties submitted
that the relevant market for the supply of FIBCs was a European-wide or global
market. The parties further submitted that both 3i and Rosenlew’s sales into
Ireland are very small. 3i estimates it accounts for less than 10% of total sales of
FIBC’s in Ireland, and Rosenlew estimates that it has less than 1% of total sales
in Ireland. Market enquiries also indicated that post merger there would still be
number of significant competitors for Irish customers. Accordingly, the Authority
found that the proposed acquisition would not have a substantial impact on
competition within the State.
5. In assessing this matter, the Authority did not form a definitive view on market
definition, because irrespective of whether a European-wide, global, or narrower
Irish market definition was adopted, the proposed acquisition would not have had
a substantial impact on competition within the State.
6. As it was found that the impact on competition would not be substantial even if
3i’s non-controlling interests in BulkBag and Structure-Flex had been taken into
account, the Authority did not form a definitive view as to whether such non-
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