ANNOUNCEMENT 26 May 2020

In May 2020, the European Commission approved a EUR 63.9 million French state aid measure to Novares Group, as a response to the economic crisis originated by the COVID-19 pandemic.

NUMBER OF INTERVENTIONS

1

  • 1 harmful
  • 0 neutral
  • 0 liberalising

SOURCE

SA.57405 Covid-19 - Groupe Novares. Available at: https://ec.europa.eu/competition/elojade/isef/case_details.cfm?proc_code=3_SA_57405

European Commission Decision. Objet: Aide d’État SA.57405 (2020/N) – France - COVID 19 - Groupe Novares. Available at: https://ec.europa.eu/competition/state_aid/cases1/202028/286293_2171499_82_2.pdf

Novares Group. Our products. Available at: https://www.novaresteam.com/our-solutions/our-product-lines/

Inception date: 26 May 2020 | Removal date: open ended

Loan guarantee

On 26 May 2020, the EU approved a EUR 63.9 million (approx. USD 70.1 million) French aid measure to Novares Group, as a response to the economic crisis originated by the COVID-19 pandemic.

The individual aid measure takes the form of a 6-year loan guarantee for up to 90% of a EUR 71 million loan offered to Novares Group, in other words, for a total amount of EUR 63.9 million.

Novares Group is a plastic solutions provider for the automotive industry, based in France but with a presence in 23 countries. It employs 9 300 people worldwide – 1 400 only in France.

The European Commission’s Decision noted that the measure is “liable to distort competition within the automotive market and affect trade” (own translation).

Regardless, the Commission approved the state aid amendment without raising objections, concluding that the measure is compatible with the internal market pursuant to Article 107(3)(b) of the Treaty on the Functioning of the European Union.

The state aid is approved under the Temporary Framework under the State Aid and its amendment of 2 April 2020. The European Commission adopted the Temporary Framework under the State Aid rules of the European Union on 19 March (see related state act).  

AFFECTED SECTORS