Page 5 - Bulletin No. 14 - Free Competition

Competition Audit to Tropigas de Panamá, Merger between ASSA Insurance
S.A. and Manantial de Volcán, S.A. Company, S.A. and
GENERAL ASSURANCE, S.P.A. BOLETÍN de Libre Competencia PANAMÁ

On October 23, 2017, the National Directorate for Free
Competition (DNLC) simultaneously conducted a
competition audit of Tropigas de Panamá, S.A. and
Manantial de Volcán, S.A., by means of Resolution No.
DNLC-HCE-033-17 of October 12, 2017 that orders the
realization of the same. On September 8, 2017, ASSA COMPAÑÍA DE SEGUROS,

This is due to the fact that the companies signed an S.A. (hereinafter ASSA), and ASSICURAZIONI
extrajudicial settlement with ACODECO because they were GENERALI, S.P.A. (hereinafter GENERALI), through their
investigated by the DNLC for the alleged commission of an respective legal representatives, submitted a formal
illegal monopolistic practice against AGUA GAS ROBLE, request for prior verification of a Merger so that the
Authority for Consumer Protection and Competition
S.A., DISTRIBUIDORA NUEVO HORIZONTE, S.A., Defense (hereinafter ACODECO), issued a concept on the
MANANTIAL DE VOLCÁN, S.A., and TROPIGAS DE merger through which the assets and liabilities of
PANAMÁ, S.A., for irrationally establishing exclusive GENERALI, in the Republic of Panama, where transfered
advantages in favor of one or more economic agents (tied to ASSA.
sale), conduct defined in numeral 3 of article 16 of Law 45
of October 31, 2007. GENERALI, formalized the transaction in which 100% of its
operations in Panama, are transferred to ASSA Compañía
Result of this research, MANANTIAL DE VOLCÁN, S.A., de Seguros, S.A., a company with a presence in all Central
and TROPIGAS DE PANAMÁ, S.A. (hereinafter THE American countries. It is indicated that this operation aims
GROUP) decide to collaborate with ACODECO and offered to optimize the presence of GENERALI in the world,
commitments and guarantees through an extrajudicial focused mainly on an adequate distribution of resources. 1
settlement for the cessation of the conduct investigated
with respect to the commercialization of tied form of the During the process of analysis and approval or denial of the
25-pound gas tank and Bambito water in part of the Coclé regulatory authorities in Italy and Panama, each company
region, in such a way that distributors AGUA GAS ROBLE, will continue to operate independently until these approvals
SA were excluded from liability and DISTRIBUIDORA are formalized.
NUEVO HORIZONTE, S.A., in order to give an early
termination of the administrative investigation. In Panama, the National Directorate for Free Competition
of ACODECO through Resolution DNLC-HCE-039-17 of
In the extrajudicial settlement, a series of conditions that November 27, 2017 issued a favorable concept on the
had to be fulfilled for a period of time was established, so merger presented.
that the transaction could be perfected. In the fourth clause
of said agreement, paragraph a, it was established that:
"a) THE AUTHORITY is empowered, this is recognized
and accepted by THE GROUP, to perform, without prior
notice and without any type of authorization,
or judicial order, inspections, examinations
and audits in all THE GROUP facilities, for a
period of 24 months, counted as of this
extrajudicial settlement is formally approved
by the Cabinet Council”. 1

In the audit conducted, no information was
identified that would indicate limitations to the
principles of free competition.

1 https://www.generali.com.pa/noticias/formalizacion-de-acuerdo-
1 El Consejo de Gabinete aprobó la transacción extrajudicial el 10 de diciembre de 2015. de-venta-assicurazioni-generali-spa-sucursal-panama
PRESENT 5