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EC orders recovery of SEK 14.5 in illegal state aid for food processing facility sale

By  |  February 8, 2012
EC orders recovery of SEK 14.5 in illegal state aid for food processing facility sale

The European Commission has ordered Sweden to recover SEK 14.5 million (approximately € 1.61 million) from Hammar Nordic Plugg for the sale of a food processing facility that violated EU state aid rules. The facility was sold by the municipality of Vänersborg in 2008 to Hammar Nordic Plugg, a real estate company.

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    An investigation of the sale found that this sale was carried out at below market value: Vänersborg had bought the property for SEK 17 million, sold it to Hammar Nordic Plugg for SEK 8 million, who then sold it to private investors for SEK 40 million. The below-market sale gave Hammar Nordic Plugg an undue economic advantage over its competitors, and the difference between the market value and price paid constitutes state aid. 

    Source: EC Press Release

     

    Related content: The State Aid Action Plan: A Bold Move or a Timid Step in the Right Direction? (Frederic Jenny, ESSEC Business School)