L 233/38 Official Journal of the European Communities 30.8.2002 COMMISSION COMMISSION DECISION of 21 November 2001 declaring a concentration to be compatible with the common market and the functioning of the EEA Agreement (Case No COMP/M.2498 — UPM-Kymmene/Haindl Case No COMP/M.2499 — Norske Skog/ Parenco/Walsum) (notified under document number C(2001) 3703) (Only the English text is authentic) (Text with EEA relevance) (2002/737/EC) THE COMMISSION OF THE EUROPEAN COMMUNITIES, Having regard to the Treaty establishing the European Community, Having regard to the Agreement on the European Economic Area (EEA Agreement), and in particular Article 57 thereof, Having regard to Council Regulation (EEC) No 4064/89 of 21 December 1989 on the control of concentrations between undertakings, (!) as last amended by Regulation (EC) No 1310/ 97 (%), and in particular Article 8(2) thereof, Having regard to the Commission decision of 23 July 2001 to initiate proceedings in this case, Having given the undertakings concerned the opportunity to make known their views on the objections raised by the Commission, Having regard to the opinion of the Advisory Committee on Concentrations (%), Having regard to the final report of the Hearing Officer (%), Whereas: (1) On 20 June 2000, the Commission received notification of a proposed concentration by which the Finnish firm UPM-Kymmene (hereinafter: UPM) intends to acquire sole control over the German company Haindl'sche Papierfabriken KGaA (Haindl) by way of purchase of all shares in Haindl. On the same day, the Commission received notification of a second concentration which () OJ L 395, 30.12.1989, p. 1; corrected version published in O] L 257, 21.9.1990, p. 13. () O] L 180, 9.7.1997, p. 1. () O] C 206, 30.8.2002. () O] C 206, 30.8.2002. concerns the resale of two of the six Haindl mills (Haindl-2), Parenco in the Netherlands and the Walsum mill in Germany, by UPM-Kymmene to the Norwegian paper manufacturer Norske Skog. After examination of the notification, the Commission concluded that the notified operation fell within the scope of Regulation (EEC) No 4064/89 (hereinafter: the Merger Regulation) and raised serious doubts as to its compatibility with the common market and the func- tioning of the EEA Agreement. Following thorough investigation of the case, the Commission has come to the conclusion that the proposed concentration will not create a collective dominant position as a result of which -effective competition in the common market and the functioning of the EEA Agreement would be significantly impeded. I. THE PARTIES UPM-Kymmene is the holding company of a corporate group active primarily in the forestry products industry, divided principally into three business areas: printing papers (newsprint, magazine and fine paper divisions), converting (converting materials), and wood products (sawn timber and plywood). Haindl is a family-owned company active in the paper industry. Another activity of the Haindl group is the regional airline Augsburg Airways which will be trans- ferred to the former Haindl shareholders prior to closing of the transaction in question or by 31 December 2001 at the latest.