DECISION no.10105.05. 2006 regarding the merger achieved by SC

							                                DECISION no.101/05.05. 2006

regarding the merger achieved by SC COMNORD SA Bucuresti, taking over
                the sole control of SC GIRUETA SA Jilava


THE PRESIDENT OF THE COMPETITION COUNCIL,


Having regard to:

1. The Decree no. 57/2004 for the appointment of the Competition Council
members,
2. The provisions of the Competition Law no. 21/1996, republished,
3. The Regulation on economic mergers’ authorization, subsequently completed
and amended,
4. The provisions of the Regulation on the organization, functioning and
procedures of the Competition Council, subsequently completed and amended,
5. The Guidelines on the definition of the relevant market,
6. The Guidelines on application of the provisions of Art. 331 of the Competition
Law no. 21/1996 regarding calculation of the authorization fee for economic
concentrations;
7. The notification submitted by the parties, registered under the number
RS- 21/28.02.2006,
8. The acts from the case file no. RS -21/28.02.2006;
9. The Note of the Energy and Industry Directorate regarding to the economic
concentrations notified;


Taking into account the following:

1. The economic concentration was made in based the shares sales Contract no.
B 030, signed with AVAS, as the seller, and SC COMNORD SA Bucuresti, as the
purchaser, this follower acquiring a share stock which represent 9, 2206% of the
join stock of SC GIRUETA SA Jilava.

2. The operation falls under the provisions of art.10 (2) (b) of the Competition
Law no. 21/1996, republished. The aggregate turnover of the companies involved
in the operation exceeds the minims threshold stated by art.141 of the
Competition Law no. 21/1996.

3. The notification became effective on April 5, 2006.

1
 At the moment when the economic concentrations took place, the threshold provided by the art. 14 of the
Competition Law no. 21/1996, republished, it was 100 mli.lei (the Order no. 216 of the President of the
Competition Council, published in the Official Journal no.922/17.12.2002).
4. The main object of activity of the acquiring undertaking, SC COMNORD SA, is
the construction of buildings and work of genius – NACE code 4521, while the
additional object of activities are: the production elements of concrete for
constructions – NACE code 2661, the production of mortar - NACE code 2664,
the production others elements of concrete, the cement and the plaster - NACE
code 2666.

5. SC COMNORD SA owns the joint control by SC BANEASA REZIDENTIAL
SRL, which the main object of activity, is the development (promotion) real
estate.

6. The main object of registered activity of the acquired undertaking, SC
GIRUETA SA, is the production of handling machines – NACE code 2922 and as
the main object of activity declared is the production of the metallic constructions
and the component parts of the metallic structures - NACE code 2811, while the
additional objects of activity are: rental of construction machinery - NACE code
4550 and rental of own goods real estate or charter’s - NACE code 7020. The
main products, fabricated by SC GIRUETA SA may be included in the following
category: handling machines, crushed aggregates and the metallic constructions.

7. SC GIRUETA SA owns control over SC GIRUETA MACARALE SRL Jilava,
which is the main object of activity rental of construction machinery - NACE code
4550.

8. Having in regard the activities achieved both by the acquired undertaking and
the company controlled by this company the relevant markets in the proposed
concentration have been defined as:
- handling machines market;
- crushing/sorter aggregates market;
- metallic constructions market;
- rental of construction machinery market;
- retail trade market;
on the entire territory of Romania and,
- industrial spaces rental market, over the territory of Bucharest and adjacent
areas.

9. As result of the economic concentration, the situation on the relevant market
doesn’t change. The market shares held by SC Girueta SA Jilava in the previous
year to the merger (2002), on the main relevant markets were:
- 6% on the handling machines market;
- 6% on the crushing/sorter aggregates market;
- 0,71% on the metallic constructions market;
- 4% on the rental of construction machinery market;
- 2% on the industrial spaces rental market.
10. As the acquiring undertaking, SC COMNORD SA, or any other undertaking
    controlled by him, has not been active on the respective markets until the
    moment of acquisition. The situation on the relevant markets doesn’t
    change.

11. From the moment when the economic concentration took place (year 2003)
     until the moment of notification (year 2006), the situation on the relevant
     markets has changed, in 2004 being established another company, SC
     GIRUETA MACARALE SRL, controlled by SC GIRUETA SA, having as
     object of activity rental of construction equipment. Starting with 2005, SC
     GIRUETA SA stopped being present on the handling machines market and
     on the crushed aggregates market in 2004 and 2005, meaning that the
     company stopped producing this type of products. Thus, the market share
     held in 2005, previous to the economic concentration are the followings:
               0% on the handling machines market;
               0% on the crushing/sorter aggregates market;
               8,65% on the metallic constructions market;
               23% on the rental of construction machinery market;
               2% on the industrial spaces rental market.

12. The offer on the defined relevant markets is represented by other domestic
producers and importers.

13. The inquiry on the defined relevant markets is represented by undertakings
active in the field civil engineering and industry, in Romania.

14. The proposed merger does not create or consolidate any dominant position,
nor has any anticompetitive effect such as restriction, prevention or distortion of
competition on the Romanian market.


                                     DECIDES


Art.1. The merger between SC COMNORD SA Bucuresti, and SC GIRUETA SA
Jilava, by acquiring control, is authorized, in keeping with the provisions of art. 46
alin.(1) let. b) of the Competition Law no. 21/1996, republished and point 138B,
let. b), Chapter II, Part II of the Regulation on economic mergers’ authorization, it
issued a non-objection decision, noticing that, although the operation falls under
the law scope, there are no serious doubts regarding its compatibility with a real
competitive environment.

Art.2. The authorization tax stated, as stipulated at art.32 (2) of the Competition
Law 21/1996, republished, is worth of ( ) RON and shall be paid by treasury-
type payment order to the state budget. The authorization fee will be paid by SC
COMNORD SA within 30 days from the date of the communication of the
decision. A copy of the respective payment order will be sent to the Competition
Council.

Art.3. This decision is applicable as of its date of communication.

Art.4. Pursuant to art. 47 (4) of the Competition Law 21/1996, republished, this
decision may be appealed by the interested parties before the Bucharest Court of
Appeal, the administrative section, within 30 days from its communication.
Art.5. This decision shall be communicated by the General Secretariat of the
Competition Council to:

SC COMNORD SA
Address: Calea Grivitei Street, no 136, sector 1, Bucuresti
Tel.: 206 68 06
Fax: 206 68 02; 206 68 48


PRESIDENT