The request filed at the Competition Council on Tuesday by the Grup Feroviar Roman (GFR) for the approval of the takeover of CFR Marfa is incomplete, Competition Council President Bogdan Chiritoiu stated on Saturday in Sinaia. According to him, no kind of answer is ruled out, Money.ro reports.
“The market shares are high and we are looking at this. We can say “yes,” “no” or “conditional yes.” The conditions can be structural, such as giving up certain parts of these companies. We can also look at the contracts. It’s less probable to put conditions in what concerns the price, but we will look into this too. Nothing is ruled out,” Chiritoiu explained. Asked what will happen if the Competition Council’s answer is negative, Chiritoiu answered that in that case the whole transaction will be blocked. “We talked with the European Commission about this case too and we will inform them next week that we received the notification. Even though the documents are not complete we will tell the Commission what we have,” Chiritoiu added.
The Competition Council announced on Friday, in a press release, that it requested market information about the economic concentration formed after CFR Marfa is taken over by GFR.
The CC is interested in the third parties’ observations and points of view on this transaction, including those of competitors and of the clients of the parties involved.
“We want to find out the market actors’ opinions, to collect as much information as possible in order to be able to analyze as objectively as possible the impact that this transaction can have on the economy,” Competition Council President Bogdan Chiritoiu stated.
Among other things, Chiritoiu also talked about the lowering of the VAT on bread. The fact that the population feels less than half of the VAT cut while the rest of the cut remains within the distribution chain is normal and shows that the market is competitive, Competition Council President Bogdan Chiritoiu stated on Saturday in Sinaia. “If this cut would have been fully transferred to the price then a 12 per cent price drop would have resulted. What do we see after two weeks: of that 12 per cent more than half goes to the consumers and a part, 2-3 per cent, stays within the distribution chain. It’s pretty much what we expected to happen,” Chiritoiu stated. Also, the president Traian Basescu noted yesterday GFR will not have sufficient funds to buy CFR Marfa.