Carey Agri International Poland can take control over Polmos Białystok, though the consent is subject to condition, that in the coming three years the company forgoes the exclusivity to distribute the vodka it produces in favour of independent undertakings - decided the President of UOKiK

On 7 July 2005 Carey Agri International Poland (a part of the Central European Distribution Corporation capital group) filed a motion to UOKiK for approval to take over the direct control of Polmos Białystok through purchase of 61 percent of shares of this company.

In relation to the fact that the total turnover of the transaction participants exceeded the amount of EUR 50 million, the acquisition had to be reported and was subject to issuing an opinion by the President of the Office of Competition and Consumer Protection.

In the course of the antitrust proceeding, UOKiK emphasized that Carey Agri, being the leading distributor of alcohol beverages in Poland - by taking over Polmos Białystok - is becoming the owner of two out of three largest alcohol producers in the country (in August 2005 the undertaking purchased the Bols company.) Consequently, aiming to eliminate a potential threat consisting in the ability of Carey Agri to limit the access of other undertakings dealing with wholesale distribution of alcohol beverages to its products, the President of UOKiK issued a conditional consent in this case.

According to the issued decision, Carey Agri may take over the control of the company, provided the company forgoes the exclusivity to distribute vodkas produced by Bols and Polmos Białystok in favour of undertakings from outside its capital group for the next three years. Within the years 2005 - 2008 (in every year of this period) Carey Agri is obliged to realize a minimum of 35 percent of domestic sales of goods of these producers via independent distributors. This restriction particularly refers to vodkas offered under the Bols, Soplica, Absolwent and Żubrówka brands, which due to their extensive market significance are offered by each undertaking that deals with wholesale distribution of alcohol beverages.

Additionally, the President of UOKiK obliged the undertaking to hand over the information about the implementation method for the imposed condition within the time limits indicated by the Office.

Additional Information:
Elżbieta Anders, Spokesperson of UOKiK
Department of International Relations and Communication
Office of Competition and Consumer Protection
Pl. Powstańców Warszawy 1, 00-950 Warsaw
Tel. 22 827 28 92, 55 60 106, 55 60 314
E-mail: [SCODE]ZWFuZGVyc0B1b2tpay5nb3YucGw=[ECODE]