Brussels, 16/09/2008 (Agence Europe) - On Tuesday 16 September, the European Commission cleared the proposed acquisition of German construction company Kirchner Holding GmbH by Strabag SE of Austria. Both parties are active in construction markets, including road construction, and in several building materials markets. In view of the parties' low market shares in the construction markets and the local building material markets, the Commission concluded that the transaction would not significantly impede effective competition in the European Economic Area (EEA) or any substantial part of it. At the same time, the Commission has decided to refer the assessment of the impact of the operation on the Erfurt regional asphalt market to Germany's Federal Cartel Office (Bundeskartellamt). On 13 August 2008, the latter pointed out that the planned merger would affect competition on the Erfurt regional market (Thuringia) for asphalt mix, which in the opinion of the Federal Cartel Office has all the features of a distinct market and does not constitute a substantial part of the single market. In the Erfurt region, Kirchner holds shares in three asphalt mix producing companies and accounts for a substantial market share. Strabag is a competitor in this regional market. According to the Federal Cartel Office the proposed transaction could raise competition concerns due to the creation of a dominant market position. The Federal Cartel Office therefore applied for a partial referral of the case and the Commission agreed. The Federal Cartel Office will therefore examine whether this part of the merger complies with German competition law. (O.L./transl.rh)