Merger KMV/Poděbradka/Hanácká kyselka disapproved
The latter included disapproval of the concentration of Karlovarské minerální vody (KMV), Poděbradky and Hanácká kyselka. The party to the proceeding, Karlovarské minerální vody, a.s., submitted an appeal against the decision.
In its argumentation the party to the proceeding objected, among others, that the presumption of acquiring 75% market share by means of the planned concentration is speculative. The Chairman of the Office for the Protection of Competition, Josef Bednář, commented this objection “If we pay regard to the possibilities of further market development, it is not a speculation, but a real threat”. Josef Bednář also commented “Extension of the production of packed flavoured waters might result in a situation, which could be a serious barrier for development of other competitors”.
In its submission of the appeal, the party to the proceeding suggested certain commitments, to which it would have obliged itself in the case of approval of the concentration. The commitments included preservation of actual product brands, preservation of the price division of the beverages, disuniting members of the board of directors of the concentrating undertakings etc. The party to the proceeding delivered to the Office a submission in which the party to the proceeding communicated its preparedness to negotiate on further possible commitments.
Following the introduction of the results of the additionally suggested commitments to the party to the proceeding, KMV presented another submission to the Office, containing an application for a new decision on concentration of only KMV and the company Poděbradka. Neither in this case the Office found reasons for approval of the concentration. The Chairman of the Office for the Protection of Competition, Josef Bednář, commented “The party to the proceeding repeatedly failed to prove that the explicit prejudice to competition in this case would be overweighed by the economic advantages of the concentration”.
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