On Monday 10 October, the European Commission announced that it was to open an in-depth investigation into the planned buyout of Cemex Croatia by HeidelbergCement and Schwenk.
The two businesses plan to acquire assets in Croatia and Hungary that currently belong to Cemex, through their joint subsidiary DDC. The Hungarian part of the operation will be assessed by the Hungarian competition authority.
The Commission has expressed concerns for the provision of grey cement in southern Croatia, in Dalmatia, where Cemex Croatia operates three cement plants in the Split area and faces competition from DDC's imports from Bosnia-Herzegovina. The proposed transaction would combine the region's largest producer with its largest importer. The Commission's initial investigation showed that the planned operation could remove a major competitor from an already concentrated regional market. The Commission has preliminary concerns that the transaction would have the effect of increasing Cemex Croatia's market power in southern Croatia and lead to increases in grey cement prices. (Original version in French by Élodie Lamer)