LYONNAISE DES EAUX / RWE AQUA/BUDAPEST WATERWORKS (FŐVÁROSI VÍZMŰVEK)
Lyonnaise des Eaux (hereinafter: LDE) is a French Company dealing mainly with water supply and performing water- and sewage treatment which has not performed economic activities in Hungary yet. The German RWE Aqua (hereinafter: RWE) is dealing with, inter alia, water- and sewage management and it has indirect minority ownership in a few Hungarian companies not active in the field in question.
The Budapest municipality owned 98.6 per cent of Budapest Waterworks and they are dealing mainly with public and industrial water supply. After the privatisation decision the municipality sold 25 per cent and one share of the foundation shares of Budapest Waterworks through tender to the consortium of LDE-RWE. The sales of shares resulted in a change in the control of the undertaking. After the transaction the majority of the directors (4 of the 7 members of the board of directors) were appointed by the consortium. This means that the consortium acquires control over Budapest Waterworks.
On the other hand the net turnover of the Budapest Waterworks fulfilled the notification threshold of the Competition Act, so the parties were obliged to apply for authorization of the Office of Economic Competition.
In its decision Competition Council stated that the relevant market is not a competitive but a regulated monopolistic one. The change in the ownership through the privatisation transaction does not make any difference in the market position of the undertaking. Under these circumstances the Competition Council did not block the transaction.
September 4, 1997. Budapest
Fógel Jánosné dr. sk. előadó
dr. Bodócsi András sk.
dr. Kállai Mária sk.
Ágoston Marika h