Antitrust Law Daily Wrap Up, ACQUISITIONS & MERGERS NEWS: EC approves acquisitions of Chubb, Coca-Cola bottlers, (Nov 9, 2015)

By Linda O’Brien, J.D., LL.M.

The European Commission (EC) has cleared under the European Union (EU) merger regulation the acquisition of the Chubb Corporation of the United States by ACE Limited of Switzerland, the EC announced today. The transaction was examined under the simplified merger review procedure.

ACE is a global property and casualty insurance and reinsurance group, providing its services to customers worldwide. Chubb also provides insurance and reinsurance, as well as ancillary services. The Commission concluded that the proposed acquisition would raise no competition concerns because of the combined entity's moderate market position and the presence of other competitors.

Coca-Cola acquisition. The EC has also cleared under the EU merger regulation the acquisition of joint control over Coca-Cola European Partners plc. (CCEP) of the United Kingdom by the Coca-Cola Company (TCCC) of the United States and Cobega, S.A. of Spain. TCCC is a brand owner, trademark licensor, and producer of soft drink concentrates, syrups, fountain soft drink syrup, and finished beverages, which are sold to bottlers. Cobega is active in bottling and distributing beverages.

CCEP will combine four existing Coca-Cola bottlers active in Germany, Belgium, France, United Kingdom, Luxembourg, the Netherlands, Norway, Sweden, Spain, Portugal, Andorra, and Iceland. TCCC already controls one of the four bottlers— Coca-Cola Erfrischungsgetränke AG. Cobega already controls two of the bottlers, Coca-Cola Iberian Partners S.A. and Vífilfell. The Commission concluded that the proposed acquisition raises no competition concerns, as the activities of the bottlers do not overlap geographically and customers currently using the Coca-Cola bottlers would continue to have sufficient alternative choices. The transaction was examined under the normal merger review procedure.

Towers Watson—Willis Group merger. The acquisition of Towers Watson & Co. of the United States by Willis Group Holdings plc of Ireland has been approved by the EC under the EU merger regulation. The transaction was examined under the simplified merger review procedure.

Willis is a global provider of insurance brokerage and risk management consulting services. Towers Watson provides technology and services in several areas, including talent management and rewards, risk management, and financial services. The Commission concluded that the proposed acquisition would raise no competition concerns due to the combined entity's moderate market position and the presence of strong competitors.

Marubeni-Itochu Steel joint venture. Finally, the EC has approved under the EU merger regulation the creation of a joint venture by Marubeni-Itochu Steel Inc. (MISI), Itochu Corporation, and Sumitomo Corporation, all of Japan. MISI is a fully owned subsidiary of Marubeni Corporation and Itochu Corporation, two conglomerates, which produce a broad range of products, including food, textiles, chemicals, energy, and metal. Sumitomo Corporation is a conglomerate producing products and services in a wide range of sectors, including metal products, transportation and construction systems, and infrastructure.

The joint venture will produce and distribute steel civil engineering products, steel construction products, and other steel construction material outside of the European Economic Area (EEA). The Commission concluded that the proposed acquisition would raise no competition concerns because the joint venture will have no or negligible activities within the EEA. The transaction was examined under the simplified merger review procedure.

Companies: The Chubb Corporation; ACE Limited; Towers Watson & Co.; Willis Group Holdings plc; The Coca-Cola Company; Coca-Cola European Partners plc; Cobega, S.A.; Marubeni-Itochu Steel Inc.; Itochu Corporation; Sumitomo Corporation

News: AcquisitionsMergers Antitrust