Brussels, 11/06/2010 (Agence Europe) - On Thursday 10 June the European Commission approved part of the planned acquisition of the aggregate activities of Tarmac, part of the UK-based Anglo American group, by Eurovia, part of the French Vinci group. The Commission found that Eurovia's acquisition of the German and Polish activities of Tarmac would not significantly impede effective competition in the European Economic Area (EEA). At the same time, the Commission has referred the part of proposed acquisition relating to Tarmac's activities in France and the Czech Republic to the French and Czech Competition Authorities respectively, at their request. After a preliminary investigation, the Commission found this part of the proposed transaction would threaten to significantly affect competition in the aggregates, asphalt mix and civil engineering / road works markets in France and in the Czech Republic.
The Commission's preliminary market investigation confirmed that the planned deal struck by Eurovia, Tarmac and Anglo American on 12 February would not cause problems in Germany and Poland but would lead to significant overlaps in the aggregates market in France and the Czech Republic, where stakeholders raised concerns that the deal would negatively impact on competition. Moreover, the merged entity would be able to exercise its market power on the downstream markets of asphalt mix and civil engineering (including road works). Eurovia is active in road work and maintenance, urban development, rail infrastructure development, special road related services and production of materials, including aggregates and asphalt, while Tarmac's subsidiaries concerned by the transaction are active in the production and sale of aggregates through quarries and pits.
In light of this, the French and Czech authorities asked the Commission to refer the parts of the merger concerning the French and Czech markets to their competition authorities, claiming that the deal threatens to significantly impact on competition in the two countries. The Commission agreed to their request, while authorising the merger in Germany and Poland. (F.G./transl.fl)