Counsel to Intek in Winning European Antitrust Approval for its €152 Million Capitalization of G.I.M.
February 16, 2005
Cleary Gottlieb represented Intek in notifying the European Commission of its acquisition of sole control over G.I.M. - Generale Industrie Metallurgiche. The transaction was carried out through two capital increases totaling €152 million (plus €106 million in warrants).
Although the transaction did not have a Community dimension, and as such was not subject to the European Commission’s jurisdiction, the rules of six EU member states (Germany, Italy, Poland, Portugal, Spain and the United Kingdom) did apply. As a cost and time saving measure, Cleary Gottlieb sought to refer the transaction to the European Commission. The move was successful, as none of the member states having jurisdiction over the transaction objected to the referral. Furthermore, in light of G.I.M.’s current financial distress and the risks associated with any delay in consummating the transaction, Cleary Gottlieb requested a derogation from the standard waiting time requirements applicable to merger transactions. The derogation was granted on January 28.
G.I.M. is the parent company of a group of companies active in the production and distribution of copper and copper alloy products.