Cofece conditions concentration between G500 Corporation and Glencore

The Federal Economic Competition Commission (Cofece) of Mexico conditioned the concentration between Corporacion G500 S.A.P.I. de C.V., G500, S.A.P.I. de C.V., G500 Network, S.A.P.I. de C.V. and Glencore Energy MX, S.A. de C.V.

At the beginning, on February 10, 2020, G500 SAPI and Corporación G500 notified Cofece of their intention to carry out a concentration in accordance with the provisions of the Federal Law on Economic Competition (LFCE).

For purposes of the resolution, the operation analyzed includes certain service stations; the participation in the Franchise Agreement of GSOO SAPI partner service stations that are not in a Table presented in the case, the supply of fuel to GSOO SAPI non-member service stations, through the franchise model; the retail sale of fuels and other products through G500 SAPI non-member service stations, through a franchise model; and the granting of turnkey franchises to service stations that are not G500 SAPI partners.

In the end, Cofece subjected the authorization of the operation indicated in the previous operative to the fulfillment and acceptance of the conditions set forth in the Thirteenth Consideration of Law of this resolution, in accordance with article 90, section V, third paragraph, of the LFCE.

Cofece

Thus, the Commission determined that prior to the signing by one (or several) Potential Franchisee (s) of the Franchise Agreement, the Notifiers are obliged to give written notice to Cofece, regarding their intention. to sign said Contract.

Likewise, the notice referred to in the previous paragraph must contain, among other information, the following information:

Name, denomination or company name of the Potential Franchisee and description of the structure of the capital stock of the Potential Franchisee, identifying the participation of each partner or shareholder, direct and indirect, until reaching the level of partner or associate that has a stake greater than 5 per hundred).

Also full identification of the Economic Interest Group to which the company that operates the service station that intends to form part of the Franchise Agreement belongs.

Terms

With respect to the Potential Franchisee (s) and each of their direct and indirect shareholders, a statement on whether they have direct or indirect participation in the capital stock, in the administration or in any activity of other agents that produce or commercialize the same, similar or substantially related goods or services to the goods or services provided by the Notifiers; as well as in other economic agents that operate service stations that have a current permit for the sale of petroleum products to the public issued by the CRE.

Where appropriate, you must indicate the name, denomination or company name of these companies and a description of their shareholding structure, direct and indirect, up to the level of an individual with a stake of more than 5 percent.

For each of the service stations in which the Potential Franchisee participates, as well as those in which any of its partners or shareholders, direct and indirect, have direct or indirect participation, the notice must contain certain information specified to carry out economic analysis.