CELEX: 31996M0677
Language: en
Date: 1996-01-08 00:00:00
Title: COMMISSION DECISION of 08/01/1996 declaring a concentration to be compatible with the common market (Case No IV/M.677 - Skanska Fastigheter / Securum Förvaltnung) according to Council Regulation (EEC) No 4064/89 (Only the Swedish text is authentic)

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31996M0677

COMMISSION DECISION of 08/01/1996 declaring a concentration to be compatible with the common market (Case No IV/M.677 - Skanska Fastigheter / Securum Förvaltnung) according to Council Regulation (EEC) No 4064/89 (Only the Swedish text is authentic)  

Official Journal C 054 , 23/02/1996 P. 0003

  COMMISSION DECISION of 08/01/1996 declaring a concentration  to be compatible with the common market (Case No IV/M.677 -  Skanska Fastigheter / Securum Forvaltnung) according to  Council Regulation (EEC) No 4064/89   (Only the Swedish text is authentic).  The full text is  available through CSV, the Swedish version of CELEX)  The paper version of the decision is available through the  sales offices of the Office of Official Publications of the  European Communities  PUBLIC VERSION  MERGER PROCEDURE  ARTICLE 6(1)(b) DECISION  To the notifying parties  UNOFFICIAL ENGLISH TRANSLATION  Dear Sirs,  Subject : Case No. IV/M.677  SKANSKA FASTIGHETER/SECURUM  FOERVALTNING  <ind> Notification of 24.11.1995 pursuant to Article 4 of  Council Regulation No 4064/89    1. <ind> On 24.11.95, the Commission received a notification  of a proposed concentration pursuant to Article 4 of a  Council Regulation (EC) No. 4064/89 [OJ No L 395 of  30.12.1989; Corrigendum: OJ No L 257 of 21.09.1990, p. 13.]  by which the undertakings Skanska Fastigheter AB and Securum  Foervaltning AB acquire within the meaning of Article 3(1)b  of the Council Regulation joint control of the undertaking  Pandox Hotellfastigheter AB.    2.<ind> After examination of the notification, the  Commission has concluded that the notified operation falls  within the scope of Council Regulation No 4064/89 and does  not raise serious doubts as to its compatibility with the  common market.    I<ind> THE PARTIES' ACTIVITIES AND THE OPERATION    3.<ind> Skanska Fastigheter AB is a wholly owned subsidiary  of Skanska AB and is established in Sweden. Its activities  are managing, acquiring and selling real estate and   thereto connected activities and the leasing of hotels  to hotel operators and the direct operation of hotels.    4.<ind> Securum Foervaltning AB is a wholly owned subsidiary  of Securm AB and is also established in Sweden. Its main  activities are owning and managing real estate and  securities and the leasing of hotels to hotel operators and  the direct operation of hotels.    5.<ind> Securum Foervaltning AB will acquire 50% of Pandox  Hotellfastigheter AB, a wholly owned subsidiary of Skanska  Fastigheter AB. Following the operation, the parties will  transfer to the joint venture their hotel businesses in  Sweden, that is the leasing of hotels to hotel operators and  the direct operation of hotels.    6<ind> The joint venture will be jointly controlled by the  parent companies. They are equally represented in the board  and the appointment of the management of the joint venture,  as well as alterations of the business plan, requires  unanimity of the parent companies. Furthermore, the joint  venture will perform on a lasting basis all the functions of  an autonomous economic entity and its creation will not give  rise to coordination of the competitive behaviour of the  parties amongst themselves or between them and the joint  venture    II<ind>  COMMUNITY DIMENSION    7. <ind> The undertakings concerned have a combined  aggregate worldwide turnover in excess of 5,000 million ECU.  Each party has a Communitywide turnover in excess of 250  million ECU, but do not achieve more than twothirds of their  aggregate Communitywide turnover within one and the same  Member State. The notified operation therefore has a  Community dimension.     III<ind>  COMPATIBILITY WITH THE COMMON MARKET     A. Relevant product market    8.<ind> Two types of businesses will be contributed to the  joint venture: The leasing of hotels to hotel operators and  the directoperation of hotels.    9.<ind> The leasing of hotels can be regarded as a separate  market from the leasing of other types of buildings because  of the special features required by hotel operators. It may  be argued that there exist a certain degree of supply side  substitutability, in that other kinds of real estate could  be converted into hotels. However, this can only be relevant  in a long term context and also requires high investments  for the rebuilding and other requirements (as for example  sanitary and security demands and fire protection).    10.<ind> Accordingly, two product markets are relevant in  this case: The leasing of hotel buildings and the provision  of hotel services.    B. Relevant geographic market    11. <ind> The relevant geographic market for the provision  of hotel services appears to be local. The relevant  geographic market for the leasing of hotel buildings may be  broader in scope. However, it is not necessary to further  delineate the relevant geographic markets because even in  very narrow geographic markets there is not a significant  competitive impact on the EEA area.    C. Assessment    12. <ind> In view of the low market shares of the notifying  parties even in the narrowest geographic markets (not  exceeding 5% in either relevant product market in any local  area)  it appears that the notified operation will not  create or strengthen a dominant position in the common  market.    IV<ind>  CONCLUSION    13.<ind> For the above reasons, the Commission has decided  not to oppose the notified operation and to declare it  compatible with the common market and with the functioning  of the EEA Agreement. This decision is adopted in  application of Article 6(1)(b) of Council Regulation No  4064/89.    <tab> For the Commission,