Agricultural company pays fine in settlement for failure to correct wrong information relevant to a merger
01. marts 2012
On January 9, 2012, a Danish agricultural company entered into a settlement with the Public Prosecutor for infringing section 23 of the Danish Competition Act. The Danish agricultural company has intentionally or by gross negligence failed to correct wrong information which was obtained by the Danish Competition Authority. The information was relevant to a merger in which the company was one of the applicants. Accordingly the Danish agricultural company has accepted to pay a fine of DKK 50.000 (€ 6.700).
In January 2010 the Danish Competition Authority approved a merger between the agricultural company in question and another agricultural company. The merger was approved on the basis that a third agricultural company was a remaining and competitive player on the agribusiness market.
Subsequently the Danish Competition Authority discovered that the agricultural company had failed to inform the authority that the third agricultural company was distressed and was facing bankruptcy so the agricultural company in question had agreed with another agricultural company to take over the distressed company.
After this discovery the Danish Competition Authority drew back the approval of the merger since it was based in wrong information. The merger was shortly after approved together with the two companies overtaking of the third agricultural company.
This is the first time that a company is fined for failing to correct wrong information obtained by the competition authority.