The Competition Commission received a request from the firm regarding the possibility of economic concentration.
The forestry company Silver Mountains asked permission to Competition Defense Commission to be able to acquire 4 companies that are dedicated to the same thing, a move that could mean an economic concentration of the sector in the Uruguay.
The intentions of Silver Mountains are the purchase and sale of 100% of the shares of the companies: Taurion, Taurion Agrarian Association of Limited Liability, Monte Fresnos and Monte Fresnos Agrarian Association of Limited Liability. The four are owned by Global Timber Spain SLU and Global Timber International LLC of the Nuveen Natural Capital Group.
These companies own several apartment properties such as Treinta y Tres, Durazno, Lavalleja, Rocha, Florida Maldonado and Cerro Lago. They are dedicated to planting eucalyptus and pine trees. These properties represent a total of 32,000 hectares, of which 20,000 are used for eucalyptus plantations for the purpose of roll production.
The role of the commission
From the office of the decentralized body of the Ministry of Economy and Finance They understood that it was necessary to carry out a market study and, therefore, delve into the competitive analysis.
After this, a second stage begins where the company is informed of the economic concentration and a time is opened to study possible allegations, changes and impacts on competition, as established by law 18,159. on Defense of Free Competition in Commerce.
Meanwhile, the request for economic concentration must be established when the annual turnover of the Uruguay of the group of companies that are part of the sector is greater than or equal to 600 million Indexed Units (UI), which is equivalent to 89.9 million dollars.
From there, the body has 10 business days to control the documentation and information necessary to then have 60 days in a row to make the decision. If no conclusion is reached, another 60 days will be granted.
However, if that time expires, authorization will be given tacitly if the commission has not yet delivered a resolution, although the possibility of carrying out a resolution is not ruled out. further investigation if improper practices are identified.
Source: Ambito
