The European Commission has approved, under the EU Merger Regulation, the acquisition of certain Suez waste management companies in Germany, Luxembourg, the Netherlands and Poland, by the Schwarz Group. The approval is conditional on the divestiture of Suez's lightweight packaging (LWP) sorting business in the Netherlands.
Executive Vice President Margrethe Vestager, in charge of competition policy, said: “Competitive markets at every level of the recycling chain are a crucial contribution to a more circular economy and essential to achieve the objectives of the Green Deal. With the divestment of Suez' sorting plant in the Netherlands, the acquisition can go ahead while preserving effective competition in the sorting of plastic waste market in the Netherlands.”
Both the Schwarz Group and the Suez waste management companies concerned are active across the waste management chain in several countries. In particular, the two companies are leaders in the sorting of lightweight packaging originating in the Netherlands.
The Commission's investigation
The Commission had concerns that the proposed acquisition, as originally notified, would have significantly reduced the level of competition in the market for the sorting of LWP in the Netherlands.
In particular, the Commission's investigation found that the merged entity would become by far the largest market player, owning more than half of the capacity for LWP sorting in the Netherlands, and an unavoidable trading partner to Dutch customers.
The Commission found that competitors located outside of the Netherlands exert a weaker competitive constraint, as customers prefer for waste to be sorted as close to the collection point as possible in order to minimise the financial cost and CO2 emissions associated with road transport.
The proposed remedies
To address the Commission's competition concerns, the Schwarz Group offered to divest the entirety of Suez's LWP sorting business in the Netherlands, including Suez's LWP sorting plant in Rotterdam and all assets necessary for its operation.
These commitments fully remove the overlap between the Schwarz Group and the Suez waste management companies concerned for the sorting of LWP in the Netherlands.
The Commission therefore concluded that the proposed transaction, as modified by the commitments, would no longer raise competition concerns. The decision is conditional upon full compliance with the commitments.
Companies and products
The Schwarz Group, based in Germany, is active in food retailing in over 30 countries through its retail chains Lidl and Kaufland. It also operates as an integrated service provider in the field of waste management through its PreZero business division.
The Suez waste management companies concerned, subsidiaries of the French Suez group, are active in the collection, sorting, treatment, recycling and disposal of household and commercial waste in Germany, Luxembourg, the Netherlands and Poland.
Merger control rules and procedures
The transaction was notified to the Commission on 19 February 2021.
The Commission has the duty to assess mergers and acquisitions involving companies with a turnover above certain thresholds (see Article 1 of the Merger Regulation) and to prevent concentrations that would significantly impede effective competition in the EEA or any substantial part of it.
The vast majority of notified mergers do not pose competition problems and are cleared after a routine review. From the moment a transaction is notified, the Commission generally has a total of 25 working days to decide whether to grant approval (Phase I) or to start an in-depth investigation (Phase II). This deadline is extended to 35 working days in cases where remedies are submitted by the parties, such as in this case.
Coronavirus: Commission signs contract to procure monoclonal anti-body treatment
Yesterday (27 July), the Commission signed a joint procurement framework contract with the pharmaceutical company Glaxo Smith Kline for the supply of sotrovimab (VIR-7831), an investigational monoclonal antibody therapy, developed in collaboration with VIR biotechnology. It is part of the first portfolio of five promising therapeutics announced by the Commission in June 2021, and is currently under rolling review by the European Medicines Agency. 16 EU member states are participating in the procurement for the purchase of up to 220,000 treatments. Sotrovimab can be used for the treatment of coronavirus patients with mild symptoms who do not require supplemental oxygen, but who are at high risk for severe COVID-19. Ongoing studies suggest that early treatment can reduce the number of patients that progress to more severe forms and require hospitalisation or admission to the intensive care units.
Health and Food Safety Commissioner Stella Kyriakides said: “We committed in our COVID-19 Therapeutics Strategy to have at least three new therapeutics authorised by October. We are now delivering a second framework contract that brings monoclonal antibodies treatments to patients. Alongside vaccines, safe and effective therapeutics will play a pivotal role in Europe's return to a new normal.”
Monoclonal antibodies are proteins conceived in the laboratory that mimic the immune system's ability to fight the coronavirus. They attach to the spike protein and thus block the virus' attachment to the human cells. The European Commission concluded nearly 200 contracts for different medical countermeasures worth over €12 billion.
Under the current framework contract with Glaxo Smith Kline, member states can purchase sotrovimab (VIR-7831) if and when needed, once it has received either emergency use authorisation in the member state concerned or a (conditional) marketing authorisation at EU level from the European Medicines Agency. Further information can be found here.
Water management: Commission consults to update lists of pollutants affecting surface and ground water
The Commission has launched an online public consultation to seek views on the upcoming review of the lists of pollutants occurring in surface and ground waters, as well as on corresponding regulatory standards. This initiative is particularly important for implementing the recently adopted Zero Pollution Action Plan as part of the European Green Deal, and wider efforts to secure the more efficient and safer use of water.
Environment, Oceans and Fisheries Commissioner Virginijus Sinkevičius said: “All Europeans should benefit from clean water. Ensuring good quality of surface and groundwater in Europe is paramount for human health and for the environment. Pollution caused by pesticides, manmade chemicals or from residues of pharmaceuticals must be avoided as much as possible. We want to hear your views on how this can best be achieved.”
A recent evaluation (‘fitness check') in December 2019, found EU water legislation to be broadly fit for purpose. However, improvement is needed on aspects such as investment, implementing rules, integrating water objectives into other policies, administrative simplification and digitalisation. This revision aims to address some of the shortcomings in relation to chemical pollution and the legal obligation to regularly review the lists of pollutants, as well as to help accelerate implementation. The public consultation is open for feedback until 1 November 2021. More information is in this news release.
COVID-19 vaccines: Launch of the interactive map on vaccine production capacities in the EU
The Commission has published an interactive map showcasing COVID-19 vaccine production capacities in the EU, along the entire supply chain. The mapping tool is based on data gained through the work of the Task Force for Industrial Scale-up of COVID-19 vaccine production, on data collected during the matchmaking event organised by the Commission in March, as well as publicly available information and information shared by member states. This data will be complemented and updated as further information becomes available.
Commissioner Breton, responsible for the Internal Market and head of the Task Force, said: “With more than one billion vaccine doses produced, our industry has helped the EU become the world's most vaccinated continent and the world's leading exporter of COVID-19 vaccines. This interactive map, featuring hundreds of EU-based manufacturers, suppliers and distributors, shows the breadth of the industrial ecosystem, as well as the potential for new industrial partnerships to further boost our health emergency preparedness.”
The Task Force categorized the companies based on their main area of activity, thus companies may have more capacities than those reflected in the map. The Task Force for Industrial Scale-up of COVID-19 vaccine production was set up by the Commission in February 2021 to ramp up production capacity for COVID-19 vaccines in the EU, acting as a one-stop-shop for manufacturers seeking support, and to identify and address bottlenecks in terms of production capacity and supply chain. The interactive map is available here.
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