UOKiK change of heart allows Elektrim Kable purchase

The Office for Competition and Consumer Protection (UOKiK), overturning its own decision made in June, has agreed to the takeover of cable producer Elektrim Kable (EK) by Krakow-based Krakowska Fabryka Kabli (KFK). In March KFK signed a letter of intent for the purchase of a 70.49% stake in EK for $100 million. In rejecting the takeover, the UOKiK said at the time that the transaction might limit competition in the industry and risked creating a monopoly. Andrzej Babas, president of KFK, has long been a supporter of consolidation in the Polish cable industry as a way of enabling it to compete with European producers. The UOKiK appears to have been won over. Justifying the unexpected change of heart, UOKiK spokesperson Iwona Zaczek said, "We were convinced by arguments that our market must be able to compete with other European producers." (Gazeta Wyborcza, p. 28; Rzeczpospolita, p. B4) M.T.K.