COMMISSION DECISION
of 21 October 2008
on State aid C 44/07 (ex N 460/07) which France is planning to implement for FagorBrandt
(notified under document number C(2008) 5995)
(Only the French text is authentic)
(Text with EEA relevance)
(2009/485/EC)
1.
PROCEDURE
2.
DESCRIPTION
3.
GROUNDS FOR OPENING THE PROCEDURE
3.1.
Risk of circumvention of the prohibition on restructuring aid to newly created firms
3.2.
Risk of circumvention of the obligation to reimburse incompatible aid
3.3.
Doubts about the company’s long-term viability
3.4.
Inadequacy of the compensatory measures
3.5.
Doubts about the aid recipient’s contribution
4.
COMMENTS FROM INTERESTED PARTIES
4.1.
Comments from Electrolux
4.2.
Comments from the second competitor
4.3.
Comments from FagorBrandt
5.
COMMENTS FROM FRANCE
5.1.
Comments from France on the opening decision
5.2.
Comments from France on the interested parties’ comments
6.
ASSESSMENT OF THE AID
6.1.
Existence of aid within the meaning of Article 87(1) of the EC Treaty
6.2.
Legal basis of the assessment
6.3.
Eligibility of the company for restructuring aid
(in million EUR) |
||||||
|
2002 |
2003 |
2004 |
2005 |
2006 |
2007 |
Turnover |
847,1 |
857,6 |
813,2 |
743,6 |
779,7 |
903,0 |
Gross margin |
205,2 |
215,1 |
207,0 |
[…] |
[…] |
[…] |
Net result |
15,5 |
13,8 |
(3,6) |
[…] |
[…] |
[…] |
Capital |
69,8 |
83,4 |
79,8 |
[…] |
[…] |
[…] |
6.4.
Provisions concerning recipients of previous unlawful aid
6.5.
Restoration of the company’s viability
6.5.1.
Market prospects and credibility of the forecasts included in the restructuring plan
6.5.2.
Doubts about the restoration of viability raised by the interested party
6.5.3.
Effect of the additional compensatory measures on the restoration of viability
(in million EUR) |
||||||
Cessation of the marketing of refrigeration, cooking and dishwashing products under the Vedette brand |
Optimistic scenario |
|||||
2007 |
2008 |
2009 |
2010 |
2011 |
2012 |
|
Turnover |
903,0 |
[…] |
[…] |
[…] |
[…] |
[…] |
Gross margin |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
Operating result before non-recurrent items |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
Operating result (EBIT) |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
Result before tax |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
Net result |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
Free cash flow |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
Accumulated free cash flow |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
(in million EUR) |
||||||
Cessation of the marketing of refrigeration, cooking and dishwashing products under the Vedette brand |
Pessimistic scenario |
|||||
2007 |
2008 |
2009 |
2010 |
2011 |
2012 |
|
Turnover |
903,0 |
[…] |
[…] |
[…] |
[…] |
[…] |
Gross margin |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
Operating result before non-recurrent items |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
Operating result (EBIT) |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
Result before tax |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
Net result |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
Free cash flow |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
Accumulated free cash flow |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
6.6.
Avoidance of undue distortions of competition
6.6.1.
Analysis of the necessity of the compensatory measures
6.6.2.
Analysis of the measures already implemented
6.6.3.
Additional compensatory measures proposed by the French authorities
6.6.4.
Conclusion on all the compensatory measures
6.7.
Aid limited to the minimum: real contribution, free of aid
|
million EUR |
% |
Restructuring costs |
[50-90] |
100 |
Financed by: |
||
Aid recipient’s own share |
[0-10] |
[…] |
Shareholder contribution |
26,9 |
[…] |
State aid |
31 |
[40-50] |