Mergers: Commission opens in-depth investigation into HeidelbergCement and Schwenk's joint acquisition of Cemex Croatia
European Commission - Daily News
Brussels, 10 October 2016
The European Commission has opened an in-depth investigation to assess whether the proposed acquisition of Cemex Croatia by HeidelbergCement and Schwenk is in line with the EU Merger Regulation.
The proposed transaction would combine Cemex Croatia, the largest producer in the area, and Duna Dráva Cement (DDC), the largest importer. HeidelbergCement and Schwenk plan to acquire, via their joint subsidiary DDC, assets in Croatia and Hungary that currently belonging to Cemex.
At the request of the parties, the Commission referred the Hungarian part of the transaction to the Hungarian competition authority. Therefore, the Commission's investigation focuses only on the acquisition of Cemex' Croatian assets. The Commission's initial investigation indicates that the proposed transaction may remove a significant competitor from an already concentrated regional market and may reduce competition for grey cement in Croatia. The transaction was notified to the Commission on 5 September 2016.
The Commission now has 90 working days, until 23 February 2017, to take a decision. Commissioner Margrethe Vestager, in charge of competition policy, said: "The Construction sector, like any other sector needs competition. As cement is an essential part of the sector we need to make sure that consolidation does not lead to higher prices for construction companies and ultimately consumers in Croatia."
Source: Europa.eu (Copyright European Commission)