No L 224/16 Official Journal of the European Communities 12. 8. 87 COMMISSION DECISION of 9 July 1987 ' on the setting-up of a venture jointly owned by Redland plc, AAH Holdings plc and British Coal Corporation (Only the English text is authentic) (87/412/ECSC) THE COMMISSION OF THE EUROPEAN COMMUNITIES, Having regard to the Treaty establishing the European Coal and Steel Community, and in particular Articles 66 and 80 thereof, Having regard to Decision No 24-54 of 6 May 1954 laying down in implementation of Article 66 (1) of the Treaty a-Regulation on what constitutes control of an undertaking (), Having regard to the application filed on 16 December 1986 by the British Coal Corporation on behalf of all three parties, seeking authorization for merging some of their solid and liquid fuel interests into a new company jointly owned by Redland plc as to 55 %, AAH Holdings plc as to 25 %, and British Coal Corporation as to 20 %, which will be called British Fuels Limited. Having obtained the comments of the United ngdom Government, Whereas : I 1. AAH Holdings plc (AAH), Lincoln, is a holding company for a group principally engaged in fuel distribution, builders’ supplies, distribution of phar- maceutical products, road haulage, general enginee- ring and environmental and agricultural services. All activities are vested in independent, both wholly- and partly-owned subsidiaries. Among these is the British Fuel Company (BFC), which is owned in partnership with the British Coal Corporation (the former National Coal Board) and is engaged in fuel distribu- tion. Apart from its holding in BFC, AAH has no further interests in the fuel distribution business. On account of its holdings in BFC and some subsidiaries under the BFC umbrella engaged in the distribution of solid fuels, AAH is an enterprise subject to the ECSC Treaty pursuant to Article 80 of the ECSC Treaty. 2. The British Coal Corporation (British Coal) is the leading producer and supplier of solid fuels in the United Kingdom, both directly and through distribu- tors. In 1985/86 United Kingdom coal consumption of 121,4 million tonnes compares with British Coal’s () Official Journal of the European Coal and Steel Community, No 9, 11. 5. 1954, p. 345/54. total sales of 111,8 million tonnes. British Coal is therefore an enterprise within the meaning of Article 80 of the Treaty. Among other subsidiaries and- holdings, British Coal has a mmonty stake in the BFC. 3. The British Fuel Company (BFC) is a partnership owned jointly by AAH as to 50,25 % and British Coal as to 49,75 %, carrying on for a number of years solid and liquid fuel distribution (‘fuel businesses’), road haulage, builders’ supplies (‘non-fuel businesses’) and related businesses. The tonnage of solid fuel handled by the partnership, which operates through a number of subsidiaries, amounted to about 3,1 million tonnes per annum on average over the last three years. 4. The Redland plc group is a holding company princi- pally engaged in the production and supply of mate- rials and services to the construction industry in the United Kingdom and overseas, and solid and liquid fuel distribution in the United Kingdom. Its fuel distribution and related businesses are carried on through various subsidiaries known as the ‘Cawoods companies’, which are held by Cawoods Holdings Ltd ; among these are: Cawoods Coal Ltd, Cawoods - Hargreaves Ltd (a 50 % joint venture with Hargreaves Group plc, now controlled by the Coalite Group), Cawoods of Northern Ireland Ltd, and some Eire ‘associates. On average over the last three years, the tonnage of solid fuel handled by the Cawoods compa- nies of Redland plc amounted to about 3,2 million tonnes per annum. On account of the activities carried on through the Cawoods Companies, Redland plc is an enterprise subject to the ECSC Treaty pursuant to Article 80. 5. The new company, British Fuel Limited (BFL), will be principally concerned with continuing and develo- ping the existing solid and liquid fuels distribution businesses presently conducted separately by . the Cawoods companies and BFC. The joint venture will emerge from the amalgamation of BFC (with British Coal’s and AAH’s current fuel distribution interests combined) with the Cawoods companies. First it is necessary, however, to- restructure legally the respec- " tive businesses in such a way as to ensure that, in principle, all assets to be amalgamated concern exclu- sively fuel businesses. These restructuring measures within groups are not at issue in this case. What is at I issue are the effects on competition of the new