March 17, 2008
German Federal Cartel Office Orders the Unwinding of an Acquisition
From Sullivan & Cromwell: “On February 28th, the German Federal Cartel Office prohibited the acquisition of a 13.75% shareholding in Norddeutsche Affinerie AG by A-TEC Industries AG. Despite falling short of an acquisition of control, the Federal Cartel Office found the transaction to be notifiable in Germany for merger review because it gave A-TEC Industries AG so-called “competitively significant influence” over Norddeutsche Affinerie AG.
The Federal Cartel Office found the combination of the two companies to be restrictive of competition. Consequently, the Federal Cartel Office prohibited the transaction and, as it had already been closed, ordered its unwinding. This case is a reminder that the Federal Cartel Office can assert jurisdiction over relatively small minority shareholdings on the basis of the concept of “competitively significant influence.” Learn more from this memo in our “Antitrust” Practice Area.