Norwegian Firm Violated EU Merger Laws by impatient acquisition implementation
It seems that Norway is the least compliant country in the Nordics. In 2011 three men have been found guilty of embezzling millions of kroner from the largely state-owned oil company Statoil. In 2012 Telenor had to write of almost 4 billion NOK after losing telecom licenses in India. In 2013 Yara International paid 48 million U.S. dollars in fines for the bribery cases the company committed in Libya, India and Russia. In 2014 it is a salmon farmer and processor: Marine Harvest ASA.
Norway has had some serious scandal cases in recent years, which affect the general opinion about bribery, fraud and corruption (BFC) standards in the public sector.
The European Commission has sent its objections to salmon farmer and processor Marine Harvest ASA for early implementation of its acquisition of competitor Morpol ASA, both of Norway. In December 2012 Marine Harvest had acquired a 48.5% stake in Morpol. This transaction was notified only in August 2013 and cleared subject to conditions in September 2013 (see IP/13/896).
Breach of the EU Merger Regulation
In the Commission's preliminary view, Marine Harvest has failed to notify its project to acquire Morpol to the Commission before it was implemented, in breach of the EU Merger Regulation. If the infringement is confirmed, the Commission may impose a fine of up to 10% of the company's annual worldwide turnover. The sending of a statement of objections does not prejudge the outcome of the investigation. Copenhagen Compliance together with SAI Global will conduct a free roundtable on EU Competition law and anti-trust issues on the 3rd June 2014. http://www.copenhagencompliance.com/AntitrustRoundtable.html
Marine Harvest notified its planned acquisition of control over Morpol on 9 August 2013 and the Commission cleared it subject to conditions on 30 September 2013. The Commission considers that by acquiring a 48.5% stake in Morpol on 18 December 2012, Marine Harvest took control over Morpol. The transaction was implemented only four days after it was signed, that is eight months before the notification to the Commission and ten months before the Commission cleared the transaction.
The Commission therefore takes the preliminary view that thereby Marine Harvest has implemented the acquisition of Morpol prior to its notification and clearance by the Commission, in breach of Articles 4(1) and 7(1) of the EU Merger Regulation. For more see: http://europa.eu/rapid/press-release_IP-14-350_en.htm
Clear eyes review process
We suggest that you conduct a clear eyes review process (CERP) regarding your BFC compliance. In the attached link you will find a compete step by step review process that starts with the BFC issues, systems, or processes that have remained the same for an extended period of time. Uncover why and what has been done the same way for a long time so that nobody even thinks about why it is done that same way anymore?
Cast a CERP on the organizational sacred BFC cows — those issues, projects, ideas, and ways of thinking that are generally considered off limits for discussion or give us a call.
http://www.copenhagencharter.com/CERPBrochure.pdf
