Brussels, 22/10/2013 (Agence Europe) - On Tuesday 22 October, the European Commission decided to open an in-depth investigation to assess whether the planned acquisition of the German company Cemex West by its Swiss rival Holcim is in line with the EU Merger Regulation. Both companies are active on the cement and construction product market. A formal decision will be issued by 10 March 2014.
The European Commission fears that the merger would reduce competition in parts of Germany and Belgium where Cemex West is an actual or potential competitor of Holcim. In particular, the Commission is concerned that the transaction could enable cement producers active in Germany and Belgium to coordinate their market behaviour, or facilitate such coordination.
The Commission's assessment will take account of the specific characteristics of the cement industry, such as the high concentration of the market in Germany and Belgium, high entry costs, the importance of commercial and structural links between firms, the level of transparency of cement prices and output and the past operation of cartels by cement companies in Belgium and Germany.
In mid-October, the Commission carried out an initial investigation into Cemex West's plan to buy up all of Holcim's cement and concrete business (see EUROPE 10946). (MB/transl.fl)