PARIBAS/CDC/BEAUFOUR/SCHWABE DEAL NOT A MERGER, COMMISSION DECIDES.

The notified share exchange deal between French banking concerns Paribas and Caisse des Dpots et Consignations (CDC), and the pharmaceuticals groups Beaufour and Schwabe is not a concentration and consequently does not fall within the scope of the 1989 Merger Regulation, the European Commission confirmed on December 11. And further to the restructuring of the Beaufour pharmaceuticals group, none of the notifying parties will have control of the new holding company, Mayroy. The deal, which was originally notified on November 11, consists of Grard Beaufour selling his interests in the Beaufour family firm to Albert Beaufour, Paribas, CDC and Schwabe. After the reorganisation, Albert Beaufour will own 76.55% of the holding company for the restructured group, Mayroy, the financial investors (i.e. Paribas Group and CDC) will own 18.45% and Schwabe 5%.

But the Commission found that there would be no sole or joint control of Mayroy. In fact, "in order for the shareholders to exercise control in accordance with Article 3@3(b) of the Merger Regulation", a statement...