The Competition Council authorized the takeover of ARDAF and RAI by GENERALI PPF Holding
 The economic concentration realized by the indirect takeover by GENERALI PPF Holding of Romanian insurance companies ARDAF and RAI, was authorized on November the 6th by the Competition Council.
Competition authorities noted that, although the notified operation falls under the incidence of the law, there are no serious doubts as to the compatibility with a normal competitive environment on the insurance markets.
The Competition Council also informs that it was established that the effects of this economic concentration on the competitive environment are not significant, and the operation does not lead to the restriction, removal or significant distortion of competition on the relevant markets.
GENERALI PPF Holding announced at the end of June that it would buy the package of the companies ARDAF and RAI, through an agreement with the Czech investment fund PPF Investments, transaction through which it will control, indirectly, 72.7% of ARDAF and 99.9% of RAI Asigurari.
In Romania, GENERALI Group is present on the insurance market through two companies: GENERALI Asigurari and FATA Asigurari Agricole.
During this week, the majority package of ARDAF was transferred by SABILE Limited, controlled by PPF Alpha Limited, to the Dutch company IBERIAN Structured Investments, through an input in nature of these shares to the increase of the share capital. Given that the Cypriot company SABILE Limited owns 100% of IBERIAN Structured Investments, the structure of the indirect shareholding of ARDAF remained unchanged.
At the end of the first half, ARDAF occupies the 9th place in the top of the Romanian insurers, recording gross written premiums of RON 218 million (EUR 59.4 million) worth and a market share of 4.93%.
Moreover, RAI Asigurari, a company specializing in travel insurance, and leader on this market, with a market share of 28.13%, recorded in the first half of the year underwritings of RON 10.22 million (EUR 2.8 million) worth.
The decision of the Competition Council regarding this operation will be published on the website of the Romanian competition authority, after obtaining the agreement of the parties involved on the confidential data.
Author: Andreea IONETE
on 07.11.2008
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