Article 2
This Decision is addressed to: Pirelli Cavi e Sistemi SpA Viale Sarca, 222 I - 20126 Milano Done at Brussels, 19 July 2000. For the Commission Mario Monti Member of the Commission (1) OJ L 395, 30.12.1989, p. 1 (corrected version in OJ L 257, 21.9.1990, p. 13). (2) OJ C 180, 9.7.1997, p. 1. (3) OJ C 59, 14.3.2003, p. 25. (4) With the exception of the intellectual property rights owned by BICC General Pyrotenax Cables Limited. (5) Turnover calculated in accordance with Article 5(1) of the Merger Regulation and the Commission Notice on the calculation of turnover (OJ C 66, 2.3.1998, p. 25). To the extent that figures include turnover for the period before 1 January 1999, they are calculated on the basis of average ECU exchange rates and translated into EUR on a one-for-one basis. (6) Parts of this text have been edited to ensure that confidential information is not disclosed; those parts are enclosed in square brackets and marked with an asterisk. (7) See also Case IV/M.1271 - Pirelli/Siemens, paragraph 8 (OJ C 336, 4.11.1998, p. 11). (8) The voltage levels mentioned are the most commonly used voltage levels; however, there are also other levels used by different customers. (9) The price differential between LV and MV cables amounts to approximately 45 to 60 %, between MV and HV it is approximately 79 %. (10) OJ C 372, 9.12.1997, p. 5. (11) For the production of HV and EHV cables, for example, the standards of cleanliness are much higher, requiring the producer to adapt the production process accordingly. (12) Based on similar considerations, a study on power cables and conductors (Databank, Cavi e conduttori isolati; June 1999; Reference ISTAT 31.3, Codice B.d.I. 059.341) applies a distinction between high technology power cables (cavi ad alta tecnologia) and standard power cables (cavi e conduttori standard). HV power cables (from > 36 kV) and EHV power cables (up to 500 to 600 kV) belong to the first group, LV and MV power cables to the second. (13) Case No IV M165-AEG/Alcatel Kabel (OJ C 6; 10.1.1992). (14) Case No IV/M1271-Pirelli/Siemens, (OJ C 336, 4.11.1998, p. 11). (15) Utilities but also suppliers have reported that the number of specifications will be reduced in the future, due the need to increase efficiency and reduce production costs. (16) There is no non-compete clause between the new entity and BICC. (17) Price comparisons have been conducted on a hollow basis, i.e. stripping out fluctuations in the copper price. (18) OJ L 199, 9.8.1993, p. 84. (19) OJ L 285, 29.10.2001, p. 1. (20) NKT also has a minor presence in Finland (5 %) and in Belgium (7 %). (21) Trade statistics given by CRU. (22) Due to the higher product value of EHV and HV power cables, transportation costs are relatively lower than for LV and MV power cables. (23) According to most customers, transportation costs mainly represent a barrier-to-entry for imports of low-value added (i.e. LV/MV) cables from outside Europe, where they can account for approximately 10 to 15 % of product value. (24) Periodic maintenance is usually not required for HV/EHV voltage power cables. (25) Figures given in the notification. (26) Through its joint venture with AEI. (27) Suppliers with domestic production capacity, not necessarily domestically owned ones. (28) In Europe approximately 0,7 % of 400 kV lines, 2 % of 220 kV lines and 5 % of 45 to 220 kV lines use underground cables. (29) Including the decision of the Bundeskartellamt breaking up the power cable cartel in Germany in 1996; B 7-31301-A-105/96. (30) In Germany, a large cable cartel was broken up in 1996. As a result, prices for HV/EHV cables have dropped by up to 60 % in the past three years, while LV and MV rates have recovered from their lows in the wake of the collapse of the 1996 cable cartel. (31) ENEL and EDF, for example, according to internal guidelines usually tend to have at least 3 suppliers for power cables of all voltage ranges. Some German utility customers tend to have at least two suppliers for each cable type in the HV/EHV ranges for safety reasons. (32) BICC's remaining facilities in Spain and Portugal. (33) This applies to contracts with an estimated value of no less than EUR 400000.