22. 12. 90 Official Journal of the European Communities No C 323/13 
STATE AID 
C 42/88 (ex NN 111/88) 
Belgium 
(Articles 92 to 94 of the Treaty establishing the European Economic Community) 
(90/C 323/05) 
Commission communication pursuant to Article 93 (2) of the EEC Treaty to other Member 
States and interested parties regarding aid which Belgium has decided to grant to Tubemeuse 
In the following letter, the Commission informed the 
Belgian Government of its decision to close the 
procedure initiated on 30 November 1988 ('). 
I refer to letter SG(88) D/14760 dated 14 December 
1988 in which the Commission informed the Belgian 
authorities that it had opened the procedure under 
Article 93 (2) of the EEC Treaty against: 
— a guarantee given by the Walloon Region to the 
Societe liegeoise de financement (SLF) in connection 
with the acquisition by the Societe liegeoise de 
participation (SLP), a subsidiary of the SLF, of 51 % 
of the capital of Tubemeuse-OCTG in July 1986; 
— other acquisitions by SLP of Tubemeuse subsidiaries 
in July 1986; 
— the conditions governing the resale of Tubemeuse to 
Soconord in July 1988. 
Under the procedure, the Belgian authorities submitted 
their comments by letters dated 22 February and 11 April 
1989. They claimed that OCTG had not been overvalued 
in 1986 or undervalued in 1988 which would in practice 
have amounted to awarding aid to Tubemeuse to remain 
in business. 
They explained that the price at which 51 % of 
Tubemeuse-OCTG had been acquired by SLP was based 
on an experts' report which they had produced, and that 
the rent and management fee to be paid by Tubemeuse 
to SLP ensured that the latter had the prospect of a satis­
factory financial return to justify the investment it had 
made. 
As regards the 1988 transaction, the Belgian authorities 
produced the second expert's report on which the 
valuation of Tubemeuse had been based at the relevant 
time. They detailed the conditions governing a public 
invitation to tender and proved that the buyer finally 
chosen was the one which had, all parameters 
considered, submitted the highest offer. 
(') OJ No C 99, 20. 4. 1989. In view of these considerations, I have pleasure in 
informing you that the Commission considers that, on 
the basis of the procedure described, the sale of the 
assets of Tubemeuse and Tubemeuse-OCTG to 
Soconord in 1988 was carried out by means of a 
competitive public procedure resulting in the best offer 
being accepted. It therefore considers that the trans­
action does not comprise any State aid within the 
meaning of Article 92 (1) of the EEC Treaty because it 
corresponds to the normal behaviour of a private 
investor in a market economy. It has therefore decided 
to close the Article 93 (2) procedure opened in 1988. 
As regards the five Tubemeuse subsidiaries acquired by 
SLP in 1986 for a total price of Bfrs 206 million, namely 
Ambuma, Distrimeuse, Hopital, Engineering and Spirale, 
the Commission notes that SLP was able subsequently to 
resell those companies for the same price. Since the 
effect of the operation is neutral, it is also closing the 
abovementioned Article 93 (2) procedure in respect of 
that part of the 1986 transaction. 
As regards the acquisition of 51 % of Tubemeuse-
OCTG by SLP in July 1986 for Bfrs 630 million, the 
Commission, on the basis of its analysis of the experts' 
report, considers that the price is excessive in relation to 
what could reasonably have been obtained for the assets 
in question by means of an open public tender 
procedure. It also considers that the financial guarantee 
in particular awarded by the Walloon Region to the 
EEC Treaty. The award of such aid to Tubemeuse is 
illegal and incompatible with the common market. 
In view, however, of its Decision of 4 February 1987 
relating to aid incompatible with the common market 
awarded by the Belgian Government to Tubemeuse and 
which required Bfrs 12,095 thousand million of the aid 
to be recovered, the Commission considers it expedient 
to take no further action regarding the case in question. 
The Commission concludes from its scrutiny of the case 
that the aid in question, amounting to Bfrs 630 million, 
has already been covered by its Decision and that no 
further action is therefore required.