A PYMNTS Company

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

By  |  February 8, 2012

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.

    Get the Full Story

    Complete the form to unlock this article and enjoy unlimited free access to all PYMNTS content — no additional logins required.

    yesSubscribe to our daily newsletter, PYMNTS Today.

    By completing this form, you agree to receive marketing communications from PYMNTS and to the sharing of your information with our sponsor, if applicable, in accordance with our Privacy Policy and Terms and Conditions.

    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)