The merger had been notified to the AFCA retroactively (Case Z-6722). The company approached the AFCA about its breach of its own accord, cooperated throughout the proceedings and acknowledged the infringement in order to conclude the proceedings by mutual agreement.
The illegal merger concerns the acquisition of the Odörfer Eisenwaren business division, which operates in the industrial B2B wholesale sector with a full assortment of tools, machines, fixtures, consumables for material processing, chemical-technical products, workshop and warehouse equipment, as well as personal protective equipment.
The AFCA cleared the implemented acquisition of the Odörfer Eisenwaren business division by SF Holding with effect from 15 October 2024, as its merger review did not raise any competition concerns.
Illegal mergers
Illegal mergers are mergers subject to notification obligations that are implemented without the necessary approval by the AFCA. The standstill obligation serves to protect competition from potential and actual anti-competitive effects.
Fines under the Federal Cartel Act
Where a merger is implemented despite being subject to a notification obligation, the AFCA is unable to assess any potential anti-competitive effects before the transaction is completed.
If the Cartel Court finds a breach in proceedings initiated by the AFCA, it may impose a fine of up to 10% of the undertaking's total turnover generated in the preceding business year.
In determining the amount of the fine, the Court takes into account, in particular, the gravity and duration of the infringement, the degree of fault, the economic strength of the undertaking and the extent of its cooperation with the proceedings.