31968R1898

576 Official Journal of the European Communities

No L 289/2 Official Journal of the European Communities 29.11.68

REGULATION (EEC) No 1898/68 OF THE COUNCIL of 26 November 1968

introducing measures to deal with basic quotas for sugar in the event of undertakings being merged or transferred or of factories being transferred or leased

THE COUNCIL OF THE EUROPEAN COMMUNITIES , HAS ADOPTED THIS REGULATION :

Having regard to the Treaty establishing the Article 1 European Economic Community ; 1 . For the purposes of this Regulation, Having regard to Council Regulation No 1009/67 EEC1 of 18 December 1967 on the common organisation of the market in sugar, and in particular ( a) 'merger of undertakings' means : Article 23# (3 ) thereof; t the consolidation into a single sugar-producing undertaking situated on the territory of a Mem­ Having regard to the proposal from the Commission ; ber State of two or more sugar-producing under­ takings situated on the territory of that same Member State ; Whereas the object of the original allocation of basic quotas by Member States to individual undertakings or factories might be jeopardised in the event of these ( b ) 'transfer of an undertaking' means : undertakings being merged or transferred or of these transfer of the business of a sugar-producing factories being transferred or leased ; whereas undertaking situated on the territory of a Mem­ consideration should therefore be given to the pos­ ber State to one or more sugar-producing un­ sibility of adjusting the original allocation of basic dertakings situated on the territory of that same quotas by transferring them ; Member State ;

Whereas there should be strict provisions to govern ( c) ' transfer of a factory' means : such adjustments so that the system of allocating quotas is not jeopardised ; whereas, to this end, the transfer of ownership of a production unit, in­ transactions referred to should be restricted to the cluding all , the plant required to manufacture territory of each Member State, the criterion for a sugar, to one or more sugar-producing un­ merger should be the formation of a sugar-producing dertakings situated on the territory of the Mem­ undertaking within the meaning of Regulation No ber State in which the factory acquired is estab­ 1009/67/EEC, and the criterion for a transfer should lished, resulting in partial or total absorption of be the assignment of ownership or, where a factory the production of the undertaking making the transfer; is transferred or leased, the transfer of the pro­ duction unit to the undertakings which have acquired or leased it ; (d) 'leasing of a factory' means : a contract, concluded for a minimum of three Whereas it is essential that the re-allocation of basic consecutive marketing years, which the parties quotas resulting from such adjustments should in undertake not to terminate before the end of the no way prejudice the interests of beet and cane third marketing year, to lease a production unit, growers ; including all . the plant required to manufacture sugar, to an undertaking situated on the territory Whereas the sum of the adjusted basic quotas should of the Member State in which the factory in not exceed the sum of the original basic quotas question is established, provided that after the allocated to the undertakings in question ; contract takes effect the undertaking leasing the factory in question can be regarded as a single sugar-producing undertaking as far as production OJ No 308 , 18.12.1967, p. 1 . is concerned.

Official Journal of the European Communities 577

2. A sugar-producing undertaking shall be regarded 2. In the event of a factory owned by an undertak­ as being situated on the territory of a Member State ing which has been allocated a basic quota being if all its factories are established on the territory of leased, the Member State concerned may reduce the that Member State. basic quota of the undertaking leasing that factory and increase the basic quota of the undertaking Article 2 taking it on lease. In the event of undertakings being amalgamated, If the lease is terminated before the end of the the Member State concerned shall , without prejudice three marketing years referred to in Article 1 ( 1 ) (d), to the provisions of Council Regulation No 1027/67/ the adjustment made to basic quotas pursuant to the EEC1 of 21 December 1967 on the fixing of basic provisions of the preceding subparagraph shall be quotas for sugar, fix a basic quota for the un­ cancelled by the Member State with effect from the dertaking formed as the result of the amalgamation date on which the lease took effect. However, if the which shall be equal to the sum of the basic quotas lease is terminated for reasons of force majeure, the allocated to the undertakings concerned prior to Member State shall not be bound to cancel the their merger. adjustment.

Article 3 Article 5 In the event of a sugar-producing undertaking being transferred, the Member State concerned shall, Measures taken to deal with basic quotas pursuant without prejudice to the provisions of Regulation to this Regulation shall not be put into effect unless No 1027/67/EEC, either allocate the basic quota of the interests of beet and cane growers in the pro­ the transferred undertaking to the undertaking duction areas concerned are protected . which has acquired it or distribute the basic quota originally allocated to the transferred undertaking Article 6 among the undertakings which have acquired it in The measures referred to in Article 5 shall, in the proportion to the production absorbed by them. event of merger, leasing or transfer taking place :

Article 4 ( a) between 1 July and 31 January of the following 1 . In the event of a factory owned by an un­ calendar year, be effective for the current market­ dertaking which has been allocated a basic quota ing year ; being transferred, the Member State concerned shall, without prejudice to the provisions of Regulation (b ) between 1 February and 30 June of any one No 1027/67/EEC, either reduce the basic quota of year, be effective for the following marketing the undertaking transferring ownership of the year. factory, the amount deducted being added to the basic quota of the undertaking acquiring that Article 7 factory, or increase the basic quotas of the under­ takings acquiring the factory concerned by distribu­ This Regulation shall enter into force on the third ting the amount deducted among these undertakings day following its publication in the Official Journal in proportion to the production absorbed by them. of the European Communities.

This Regulation shall be binding in its entirety and directly applicable in all Member States .

Done at Brussels, 26 November 1968 .

For the Council

The President G. SEDATI

1 OJ No 313 , 22.12.1967, p. 2.