PARMALAT/EUROLAT
PRESS RELEASE
PRESS RELEASE
THE COMPETITION AUTHORITY HAS BEGUN AN INVESTIGATION INTO PARMALAT
FOR ITS FAILURE TO SELL NEWLAT AND ITS ACQUISITION OF CARNINI.
At its meeting on 22 July 2004, following the receipt of information on 4 June 2004 from Parmalat S.p.A., in administration, regarding the group's subsidiaries, and in particular Parmalat's ownership of Newlat S.r.l. and Carnini S.p.A., the Competition Authority resolved to institute proceedings against Parmalat for failure to comply with the Authority's decision 7224 of 27 July 1999 authorising the Parmalat/Eurolat merger on condition that Parmalat disposed of a number of brands and production facilities acquired by the Newlat company.
From the evidence obtained, the Authority found that even though the Newlat company had been formally sold initially to Nulait Ltd, then to ECM Euro Italy Acquisition Corporation, and lastly to Boston Holdings Corporation, it had always remained under Parmalat control.
On the same day, the Authority resolved to start proceedings against Parmalat for failure to comply with its obligation to submit prior notification of mergers and acquisitions pursuant to section 16(1) of the Competition Act in respect of its acquisition of the Carnini company.
From the information supplied by Parmalat regarding its relations with the Boston Holdings Corporation and with Carnini, it transpires that even though Parmalat had formally withdrawn its notification of the acquisition of Carnini in 2001 in the light of the remarks made by the Authority in the course of the investigation, it had nevertheless acquired control of Carnini.
Rome, 5 August 2004