The Portuguese Competition Authority initiates the in-depth investigation of the SUMA/EGF merger

Press Release 05/2015
 
The Portuguese Competition Authority initiates the in-depth investigation of the SUMA/EGF merger
 
 
On 17th March, the Portuguese Competition Authority (PCA) has decided to initiate the in-depth investigation in relation to the proposed merger which consists of the acquisition of sole control of EGF – Empresa Geral do Fomento, S.A. by SUMA – Serviços Urbanos e Meio Ambiente, S.A. (EGF).
 
The PCA has decided to initiate the in-depth investigation given that in the light of the information gathered during the first phase investigation, the proposed merger raises doubts whether the merger results in a significant impediment to effective competition in the market for the collection of solid waste for which the municipalities are responsible.
 
During this second phase, the PCA will perform the supplementary investigation which are necessary to clarify the doubts raised, in particular the ones related to the risks of market foreclosure resulting from the integration, in a single group of companies, of complementary activities in the sector of collection and treatment of solid urban waste.
 
On 16th February 2015, the PCA notified SUMA and other interested parties of the draft decision to initiate the in-depth investigation. Thus, the present decision has taken into consideration the observations presented by SUMA and the said interested parties: Lisbon Municipality, Loures Municipality, Vila Franca de Xira Municipality, Fomento de Construcciones y Contratas, S.A., Cespa Portugal, S.A., Citri – Centro Integrado de Tratamento de Resíduos Industriais, S.A., Hidurbe – Gestão de Resíduos, S.A., Recolte – Serviços e Meio Ambiente, S.A., Fomentinvest Ambiente S.G.P.S., S.A., Rede Ambiente – Engenharia e Serviços. S.A., Semural – Waste & Energy, S.A., Recivalongo – Gestão e Tratamento de Resíduos, Lda. and Retria – Gestão e Tratamento de Resíduos, Lda.