• ESP CNMC announced initiation of disciplinary proceedings against Albia Gestión de servicios SLU, subsidiary of Santa Lucía group over breach of takeover notification.

Context

• On 15 April 2021 ESP CNMC launched infringement proceedings against Albia for not notifying purchase operation of funeral home Tanatoria Móstoles in October 2019.
• Practice, known as gun jumping, is breach of art 9, para 1 of Law 15/2007 on Defense of Competition, obliges companies to notify mergers to ESP CNMC prior to execution.
• On 13 January 2021, ESP CNMC ex officio required Albia to notify purchase of Tanatoria Móstoles as exceeded market share threshold for firms to notify operation of this type.
• Specifically, the thresholds were met, at least in retail market for funeral services in Móstoles, in line with market definitions in force when the operation was executed.
• After assessing operation, on 20 April 2021, ESP CNMC authorized in 1st phase without commitments, the takeover now subject to penalty over failure re prior notification.

Next Steps

• Initiation of file does not prejudge the final result of the investigation; a maximum period of 3 months is now open for the investigation and its resolution by ESP CNMC.