Jun122017

Mergers: Commission approves acquisition of Intrum Justitia by Nordic Capital, subject to conditions

EU

The Commission’s investigation focused on the markets for debt collection and debt purchasing where both Intrum Justitia and Lindorff, a portfolio company of Nordic Capital, are active. The Commission was concerned that the takeover would reduce competition in both markets in Denmark, Estonia, Finland, Norway and Sweden.

Debt collection involves the recovery of outstanding debt. The Commission’s investigation revealed that Lindorff and Intrum Justitia are very strong players on this market. Both companies are unique in their scale, reputation and ability to serve large customers that generate high volumes of claims (e.g. banks, utility and telecoms companies). A merger between Lindorff and Intrum Justitia in the five countries concerned could have led to insufficient competition in the market, resulting in lower quality of services and higher prices.

Debt purchasing involves the transfer of a creditor’s debt portfolios to another party, the debt purchaser. In most cases, the acquired debt is then collected by the purchaser itself. The Commission’s investigation found there is a strong link between debt collection and debt purchasing as a strong position on the debt collection market helps a competitor to build a strong position on the debt purchasing market, and vice versa. The Commission discovered that there is a limited number of players able to purchase certain types and volumes of debt. In the five countries concerned, the companies are mostly active in the purchase of unsecured debt (i.e. debt not protected by collateral), in which large international investors are generally not present. The combination of Lindorff and Intrum Justitia in the five countries concerned could have reduced already limited number of potential debt purchasers and in result debt sellers could have been unable to sell their debt portfolios. Preserving competition in this market will allow debt sellers to better manage their assets and risks and thus to act more efficiently to the ultimate benefit of their customers including retail clients.

The proposed remedies

In order to address the competition concerns identified by the Commission, Nordic Capital offered to divest the whole of the debt collection and debt purchasing businesses of Lindorff in Denmark, Estonia, Finland and Sweden, and the whole of the debt collection and debt purchasing business of Intrum Justitia in Norway.

These commitments fully remove the overlap between Lindorff and Intrum Justitia in the five countries where the Commission had identified competition concerns.

The Commission was therefore able to conclude that the proposed transaction, as modified by the commitments, would no longer raise competition concerns. The decision is conditional upon full compliance with the commitments.

Companies and products

Nordic Capital is a private equity company headquartered in Jersey and primarily investing in large and medium-sized companies in the Nordic region and in German-speaking parts of Europe.

Lindorff, of Norway, is one of Nordic Capital’s portfolio companies. It is active in the provision of credit management services, in particular debt collection, and in debt purchasing. Lindorff is present in a number of European countries.

Intrum Justitia, of Sweden, is active in the provision of credit management services, including debt collection, and in debt purchasing. Intrum Justitia is present in a number of European countries.

Merger control rules and procedures

The transaction was notified to the Commission on 12 April 2017.

The Commission has the duty to assess mergers and acquisitions involving companies with a turnover above certain thresholds (see Article 1 of the Merger Regulation) and to prevent concentrations that would significantly impede effective competition in the EEA or any substantial part of it.

The vast majority of notified mergers do not pose competition problems and are cleared after a routine review. From the moment a transaction is notified, the Commission generally has a total of 25 working days to decide whether to grant approval (Phase I) or to start an in-depth investigation (Phase II). This deadline is extended to 35 working days in cases where remedies are submitted by the parties, such as in this case.

More information will be available on the Commission’s competition website, in the Commission’s public case register under the case number M.8287.

Jun122017

Preparing for Brexit top issue for 4000 farmers at roadshow events

Welsh Government

Cabinet Secretary for Environment and Rural Affairs, Lesley Griffiths, said the positive feedback from the 4,000 plus farmers who attended one of Farming Connect’s  ‘Farming for the future’ roadshow events showed how important it was to speak to farmers on the ground about the future of their industry.  

Lesley Griffiths said: 

“There is a lot of uncertainty for agriculture as we transition from the EU and I am keen to support farmers to become as resilient as they can to any changes that are to come. These events have been an excellent way of communicating with the industry and to highlight the support I have made available through Farming Connect and the Farm Business Grant.” 

Eirwen Williams, director of rural programmes with Menter a Busnes, which delivers Farming Connect on behalf of the Welsh Government, said the regional campaign had a fantastic response, with capacity audiences at each event already resulting in an increased number of enquiries and applications for services. 

“The support mechanisms provided by Farming Connect provide the appropriate support which can improve both technical and business performance to help ensure long term financial viability at this critical time.”

Attendance at a ‘Farming for the Future event allows farmers access to the technical advice now available through the Advisory Service without the need for a business plan. It also enables Welsh farmers to apply for a Farm Business Grant (FBG) which provides one-off grants of between £3,000 and £12,000. The first window will close on 30 June with another due to open in August. Additional events arranged by Farming Connect will be scheduled this summer to enable more farmers to attend.

Platform speakers at each event included representatives from Welsh Government as well as leading agricultural business and financial experts.   The line-up also included a number of farmers who had driven forward their businesses with support from Farming Connect. 

Wendy Jenkins, director of rural consultancy CARA, was a speaker at a number of the events.  

“These events made it clear that alongside any financial incentives, every business must take matters into their own hands now to ensure they achieve optimum levels of technical and business performance and make best use of resources in all those areas they can and must control. 

“Making small improvements in a number of key performance indicator areas can reap significant rewards longer term, and the whole raft of services provided by Farming Connect can contribute greatly towards this,” 

said Ms Jenkins.  

The Cabinet Secretary said in the coming months she would continue to urge all farmers in Wales to consider their long term business objectives, to access the services of Farming Connect and to consider applying for a Farming Business Grant to help them achieve these. 

“It is essential to ensure your business is prepared and in the best possible position for the future.  There has never been a more important time to find out what is available to you and to make best use of all support and guidance.” 

Following his attendance at the Farming Connect roadshow event at the Royal Welsh Showground, Lloyd Powell, a young farmer who farms with his family at Glanmiheli, Newtown, said: 

“I left the meeting with a greater understanding of what my family can do to prepare our farm business for Brexit.  We are already tapping into a number of Farming Connect services which have helped us make better use of our soil and crops. Nutrient management planning proved hugely beneficial and has resulted in considerable financial savings by reducing fertiliser costs and improving the quality of our grassland.” 

Jun122017

Press release: Foreign Secretary to meet Gulf counterparts to discuss ongoing regional tensions

HM Government

The Foreign Secretary Boris Johnson will meet a number of his Gulf counterparts this week, as foreign ministers engage with allies on the tensions in the region.

Reflecting the UK’s close friendship with all of the Gulf states, this morning (Monday 12 June) he met the Qatari Foreign Minister, Sheikh Mohammed bin Abdulrahman Al Thani. Later this week, the Foreign Secretary will hold talks with the foreign ministers of Saudi Arabia, Kuwait and the United Arab Emirates.

In all meetings, the Foreign Secretary will urge his counterparts to take immediate steps to de-escalate the current tensions and find a rapid resolution through mediation. He will say that it is in the interests of the wider region as well as the UK that a swift solution is found. He also will express the UK’s concern that collective action by the other Gulf states is having an adverse impact on the lives of ordinary people in Qatar.

At this morning’s bilateral with Sheikh Mohammed, the Foreign Secretary urged Qatar to engage with neighbours on their concerns and do more to address support for extremist groups, building on the steps already taken.

After the meeting, the Foreign Secretary said:

I have been in touch with my counterparts across the region about the current tensions with Qatar. I have urged all sides to refrain from any further escalation and to engage in mediation efforts. In that regard I pay tribute to the work of the Amir of Kuwait.

In finding a resolution, I call on Qatar to take seriously their neighbours’ concerns. Qatar is a partner of the UK in the fight against terrorism but they urgently need to do more to address support for extremist groups, building on the steps they have already taken to tackle funding to those groups.

I am also concerned by some of the strong actions which Saudi Arabia, UAE, Egypt and Bahrain have taken against an important partner, and urge them to ease the blockade on Qatar. I call on all states to take immediate steps to de-escalate the situation and to find a rapid resolution through mediation.

Further information