Skeptical of his official statements Dutch fund Reggeborgh Invest about the complete withdrawal of investments from the construction company HEK TERNA appears Competition Commission (EC), continuing to essentially raise the issue of the joint ownership of the fund by both GEK TERNA and Ellactor. The above follows both from the text of the second opinions of E.A. in the context of regulatory intervention in the construction industry, as well as from the press release that accompanies the text in question, which refers to the partial withdrawal of the Dutch from GEK TERNA. This report, in addition to casting a shadow on what is actually happening with the equity composition of the participating companies and how this affects – if it does – the competition in the construction industry as a whole, also raises other questions, given that GEK TERNA and Ellactor are listed by A.A. enterprises.

“From the investigation of E.A. it appears that the recent partial withdrawal of certain investment capital by one of the two companies limits, but does not suggest that it will actually offset the negative effects of co-ownership of the two most important companies in the sector that remain.” the press release says. In the text of E.A. in addition, it is noted that during the on-site investigation conducted on June 1, 2022 at the offices of GEK TERNA, a private arrangement was revealed between GEK TERNA, Reggeborgh and a person or company not named in the non-confidential version of the text of the Office for the purchase and sale of shares, which, in EA’s view, concluded that there was a collusive strategy. However, elsewhere E.A. it says the Dutch fund has pulled out of GEK TERNA and the latter’s competition with Ellactor is “somewhat intensifying” but not reaching the level of the first period on discounts offered in public works tenders.

Reggeborg’s commentary on E.A. he wasn’t there yesterday. However, a source close to the company emphasized in response to question “K” that the text is under consideration by competent lawyers and in any case, the relevant answers will be given in the context of the public discussion of the second opinion, which began yesterday and will end September 9, 2022.

Recall that the Dutch fund initially entered the authorized capital of GEK TERNA on March 30, 2018, gaining control over up to 30.2% of the group. At the same time, in September 2020, he acquired the rights to 12.5% ​​of L. Bobol in Ellactor (although he already controlled 5.4% of the group). It has gradually increased its stake to around 29.8%, and more recently to 46% with the prospect of increasing to 61%. In March 2021, Reggeborgh announced their full withdrawal from GEK TERNA.

Measures proposed by E.A. the following:

• Independent Governance – “Chinese Walls” – a code of conduct, in cases of joint ownership by competing companies, with respect to the management members of those companies, as well as the manner and type of information (commercially classified and not) to be transferred by joint shareholders to competing firms and vice versa.

• The imposition of a notice on the EA to conduct an appropriate economic analysis of competitive effects, in cases of increasing the share of joint participation, when any legal entity acquires a share of more than 5% in the authorized capital of more than one company-competitor in the industry in question.

• Additional obligations to active shareholders. In particular, it is proposed that a shareholder who controls a company and owns 1% of a competitor’s shares not participate, even indirectly, in meetings of boards of directors or other bodies responsible for commercial policy at which confidential information will be presented.

Other measures proposed to address distortions of competition in this sector more comprehensively include the following:

• Establishment of the procedure for formulating the conclusion of E.A. on the impact of each infrastructure project on competition at the assessment stage of the year, as well as at the stage of its implementation and development.

• With regard to the establishment of construction consortiums, it is proposed to consider this issue in the light of the provision of guidance and instructions in cooperation with the Unified Authority for Public Contracts (EADISY).