CELEX: 31968R1898
Language: en
Date: 1968-11-26 00:00:00
Title: Regulation (EEC) No 1898/68 of the Council of 26 November 1968 introducing measures to deal with basic quotas for sugar in the event of undertakings being merged or transferred or of factories being transferred or leased

576                                  Official Journal of the European Communities
No L 289/2                          Official Journal of the European Communities                                29.11.68
                              REGULATION (EEC) No 1898/68 OF THE COUNCIL
                                                of 26 November 1968
               introducing measures to deal with basic quotas for sugar in the event of undertakings
                        being merged or transferred or of factories being transferred or leased
THE COUNCIL OF THE EUROPEAN COMMUNITIES ,                      HAS ADOPTED THIS REGULATION :
Having regard to the Treaty establishing the                                              Article 1
European Economic Community;
                                                               1 . For the purposes of this Regulation,
Having regard to Council Regulation No 1009/67
EEC1     of   18   December    1967  on     the common
organisation of the market in sugar, and in particular         ( a) 'merger of undertakings' means :
Article 23# (3 ) thereof;                 t                          the consolidation into a single sugar-producing
                                                                     undertaking situated on the territory of a Mem­
Having regard to the proposal from the Commission ;                  ber State of two or more sugar-producing under­
                                                                     takings situated on the territory of that same
                                                                     Member State ;
Whereas the object of the original allocation of basic
 quotas by Member States to individual undertakings
or factories might be jeopardised in the event of these        ( b ) 'transfer of an undertaking' means :
undertakings being merged or transferred or of these                 transfer of the business of a sugar-producing
factories being transferred or leased ; whereas                      undertaking situated on the territory of a Mem­
consideration should therefore be given to the pos­                  ber State to one or more sugar-producing un­
sibility of adjusting the original allocation of basic               dertakings situated on the territory of that same
quotas by transferring them ;                                         Member State;
Whereas there should be strict provisions to govern
                                                                ( c) 'transfer of a factory' means :
such adjustments so that the system of allocating
 quotas is not jeopardised ; whereas, to this end, the               transfer of ownership of a production unit, in­
transactions referred to should be restricted to the                  cluding all , the plant required to manufacture
territory of each Member State, the criterion for a                   sugar, to one or more sugar-producing un­
 merger should be the formation of a sugar-producing                  dertakings situated on the territory of the Mem­
 undertaking within the meaning of Regulation No                      ber State in which the factory acquired is estab­
 1009/67/EEC, and the criterion for a transfer should                 lished, resulting in partial or total absorption of
 be the assignment of ownership or, where a factory                   the production of the undertaking making the
 is transferred or leased, the transfer of the pro­                   transfer;
 duction unit to the undertakings which have
 acquired or leased it;
                                                                (d) 'leasing of a factory' means :
 Whereas it is essential that the re-allocation of basic              a contract, concluded for a minimum of three
 quotas resulting from such adjustments should in                     consecutive marketing years, which the parties
                                                                      undertake not to terminate before the end of the
 no way prejudice the interests of beet and cane
                                                                      third marketing year, to lease a production unit,
 growers ;
                                                                      including all . the plant required to manufacture
                                                                      sugar, to an undertaking situated on the territory
 Whereas the sum of the adjusted basic quotas should                  of the Member State in which the factory in
 not exceed the sum of the original basic quotas                      question is established, provided that after the
  allocated to the undertakings in question ;                         contract takes effect the undertaking leasing the
                                                                      factory in question can be regarded as a single
                                                                       sugar-producing undertaking as far as production
    OJ No 308, 18.12.1967, p. 1 .                                      is concerned.
 ---pagebreak---                                    Official Journal of the European Communities                                      577
2. A sugar-producing undertaking shall be regarded              2. In the event of a factory owned by an undertak­
as being situated on the territory of a Member State            ing which has been allocated a basic quota being
if all its factories are established on the territory of        leased, the Member State concerned may reduce the
that Member State.                                              basic quota of the undertaking leasing that factory
                                                                and increase the basic quota of the undertaking
                         Article 2                              taking it on lease.
In the event of undertakings being amalgamated,                 If the lease is terminated before the end of the
the Member State concerned shall, without prejudice             three marketing years referred to in Article 1 ( 1 ) (d),
to the provisions of Council Regulation No 1027/67/             the adjustment made to basic quotas pursuant to the
EEC1 of 21 December 1967 on the fixing of basic                 provisions of the preceding subparagraph shall be
quotas for sugar, fix a basic quota for the un­                 cancelled by the Member State with effect from the
dertaking formed as the result of the amalgamation              date on which the lease took effect. However, if the
which shall be equal to the sum of the basic quotas             lease is terminated for reasons of force majeure, the
allocated to the undertakings concerned prior to                Member State shall not be bound to cancel the
their merger.                                                   adjustment.
                         Article 3
                                                                                        Article 5
In the event of a sugar-producing undertaking being
transferred, the Member State concerned shall,                  Measures taken to deal with basic quotas pursuant
without prejudice to the provisions of Regulation               to this Regulation shall not be put into effect unless
No 1027/67/EEC, either allocate the basic quota of              the interests of beet and cane growers in the pro­
the transferred undertaking to the undertaking                  duction areas concerned are protected.
which has acquired it or distribute the basic quota
originally allocated to the transferred undertaking                                     Article 6
among the undertakings which have acquired it in
proportion to the production absorbed by them.                  The measures referred to in Article 5 shall, in the
                                                                event of merger, leasing or transfer taking place :
                         Article 4
                                                                ( a) between 1 July and 31 January of the following
1 . In the event of a factory owned by an un­                        calendar year, be effective for the current market­
dertaking which has been allocated a basic quota                     ing year;
being transferred, the Member State concerned shall,
without prejudice to the provisions of Regulation               (b ) between 1 February and 30 June of any one
No 1027/67/EEC, either reduce the basic quota of                     year, be effective for the following marketing
the undertaking transferring ownership of the                        year.
factory, the amount deducted being added to the
basic quota of the undertaking acquiring that                                           Article 7
factory, or increase the basic quotas of the under­
takings acquiring the factory concerned by distribu­            This Regulation shall enter into force on the third
ting the amount deducted among these undertakings               day following its publication in the Official Journal
in proportion to the production absorbed by them.                of the European Communities.
               This Regulation shall be binding in its entirety and directly applicable in all Member
               States .
               Done at Brussels, 26 November 1968 .
                                                                                     For the Council
                                                                                      The President
                                                                                        G. SEDATI
1 OJ No 313 , 22.12.1967, p. 2.