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

• Jurisdiction: Ireland
• Date: 19 June 2003
• Submitted Date: 29 May 2003
• Decision Date: 19 June 2003
• Parties: Rosenlew Group,3i Group Investments
• Decision Number: M/03/013
• Court: Competition and Consumer Protection Commission

Determination of the Competition Authority

Determination No. M/03/013 of the Competition Authority, dated 19 June 2003

under Section 21 of the Competition Act, 2002

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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