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Image header Agence Europe
Europe Daily Bulletin No. 8159
Contents Publication in full By article 28 / 45
GENERAL NEWS / (eu) eu/competition

Commission initiates in-depth investigation into sand-lime brick sector

Brussels, 26/02/2002 (Agence Europe) - The Commission has decided to initiate an in-depth investigation into the takeover of the Dutch sand-lime brick manufacturer CVK by the German group Haniel and Dutch company Cementbow, as it fears a negative impact for competition on that market. This operation comes within the framework of a complex operation comprising several chapters. In the operation notified to the Commission last year, Haniel, diversified group present, through its subsidiary Haniel Bau-Industrie, in the production and distribution of materials for the building of walls (sand-lime bricks, produced in cellular concrete and ready-to-use concrete), informed the Commission of its intention to take over Ytong, subsidiary of Rheinische-Westalische Kalkwerke (RWK), as well as Fels-Werke GmbH, two German companies in the building material sector. Early-December 2001, the Commission returned to the German authorities examination of the impact of acquisition of Ytong on the German market. It had already acted in the same way in October for Fels (see EUROPE of 19 October, p.15 and 3&4 December, p.12), and these issues are currently still under examination. In addition, the Commission considered that, at first sight, the group Haniel risked occupying a dominant position on the Dutch market for building materials through the co-operative company for sand-lime products CVK which it proposes taking over with Cementbow, and the acquisition of Ytong risked strengthening this dominant position in the Netherlands. By deciding to initiate an in-depth investigation over CVK, the Commission confirms that there is real danger that the takeover of the latter by Cementbow, as well as the pooling within CVK of sand-lime brick producers belonging to these companies, could lead to the creation of a dominant position on the market of wall construction materials. The Commission now has four months to pass down its verdict.

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