Summary: German logistics manufacturer Beumer Group filed a lawsuit on July 17 contesting the European Commission's decision not to assess Vanderlande's purchase of Siemens' airport logistics division. The Commission said the transaction had been completed for more than a year and therefore was not suitable for EU-level referral, urging national authorities in Portugal and Spain to continue their reviews instead.
Background
Siemens announced the sale of its airport logistics division to Vanderlande for €300 million ($341.31 million) two years ago. Vanderlande, a Dutch producer of baggage conveyors and parcel-sorting equipment owned by Japan's Toyota Industries, completed the acquisition and later sought regulatory clearance from authorities in Portugal and Spain in March.
Regulatory sequence
Portugal and Spain, joined by Italy, asked the European Commission to take over the review of the concentration. In May, the EU competition authority refused those requests. The Commission explained that the referrals were not appropriate for examination at the EU level because the deal had been completed for more than a year, and it indicated that national competition authorities should carry on with their market assessments.
Legal challenge
In a court filing dated July 17, Beumer argued the Commission erred in declining to assess the transaction and asked the court to annul the decision. In its filing, Beumer contends that "The Commission has no discretion to reject a referral request where it is clear, on the basis of objective criteria, that the requesting national competition authorities (NCAs) are not well placed to review the concentration effectively." The company also stressed that national regulators do not have the power to unwind the deal.
What the dispute raises
The case centers on two procedural questions stated in the filings: whether the EU competition authority can decline a referral request when national agencies appear poorly positioned to examine a completed concentration, and whether national regulators can provide remedies or reverse a transaction already consummated.
Current status
Beumer has asked the court to cancel the Commission's refusal to take over the review. The Commission maintains that Portugal and Spain should continue their national-level examinations, consistent with its view that the referral criteria are not met for an EU-level review given the timing of the deal.
Implications
At stake is the delineation of responsibility between national competition authorities and the European Commission in assessing completed mergers and acquisitions. The dispute also highlights disagreements among market participants about how cross-border M&A in the airport logistics sector should be scrutinized.