Stampa

SNAI SERVIZI - SAN SIRO/TRENNO (Start of investigation)


PRESS RELEASE



The Italian Competition Authority has initiated a proceeding against Snai Servizi, San Siro e Trenno.

Snai Servizi carries out activities and services dealing with the collection of bets which are accepted from the horse racing agencies. Snai Servizi's capital stock is held by 281 horse racing agencies. In addition, Snai Servizi arranges, through Teleippica and the consortium CRAI, to transmit the television signal on the horse races.

Trenno mainly deals with activities and sharings in firms of the horse racing and horse tracks sector. Trenno manages both the San Siro gallop track and trotting track in Milan and the Montecatini Terme trotting track. Furthermore, they hold a minority interest in certain firms which run the Rome Capannelle race course and the Pisa San Rossore race course.

The 281 horse racing agencies holding Snai Servizi's capital stock collect about 62% of the bets. As such, Trenno's acquisition through Snai Servizi would allow these agencies the creation of a vertical integration in the market of the organization of horse races as well as of the management of horse tracks.

During the investigation, the Authority intends to verify if the merger can constitute a dominant position in the market of the management and organization of horse races.

The vertical integration deriving from the merger and the market share acquired by Snai Servizi by entering the market of the management and organization of horse races could constitute for Snai Servizi a competitive advantage as such as to foster behaviours that are independent from those of the rival horse tracks and those of the betters.

As a matter of fact, the synergies produced both from the presence of the horse racing agencies in the bet market, from the availability of the television signal and of the services supporting the collection of bets, could modify - within the network of the horse racing agencies - the distribution of the bets among the various horse tracks.

The investigation is to be concluded by the beginning of June 1996.

Anybody interested third party may submit their opinions and considerations with regards to the proposed merger to the Italian Competition Authority, Investigative Unit C, Via Liguria, 26, 00187 Rome; phone 39 6 481621 - fax 39 6 48162456 - e-mail: antitrust@agcm.it.