Chile: Court forces sale of Gasmar, ending 3-year sector review

Chile’s Tribunal for the Defense of Free Competition (TDLC) has put an end, after three years, to its review of possible risks in the gas market in Chile. The far-reaching probe was prompted by a complaint by the National Corporation of Consumers and Users (CONADECUS) questioning the sector’s performance after the sale of the Gasco company to Spanish operators Gas Natural Fenosa.

The TDLC recognized the risks in terms of vertical and horizontal property relations existing within the market. However, it played down the existence of specific threats in the purchase of General Electricity Company (CGE). Ultimately, the Court decided to order Abastible – part of the Copec group – and Gasco, to sell their property in the Gasmar terminal within 18 months.

Regarding vertical integration risks, the TDLC focused on the participation of Copec in Metrogas and Abastible. Thus, they have ordered Empresas Copec to limit their boardmembers to “…people who are not directors or fulfill executive functions in Metrogas and Abastible.”

After learning of the ruling, Abastible defended their actions and assured that they will be evaluating future strategies. “We declare that we will proceed to study and analyze this failure and its considerations, to define the steps to follow”, the company said.

Full Content: Pulso

Want more news? Subscribe to CPI’s free daily newsletter for more headlines and updates on antitrust developments around the world.