CEMENT AND CONCRETE MANUFACTURERS MERGER WITHDRAWN AFTER KT’S ASSESSMENT

The Competition Council (Konkurencijos taryba, KT) informs that Concretus Materials, UAB (Concretus Materials) has abandoned its intentions to acquire up to 51 per cent of AB Akmenės cementas shares, and, therefore, the KT has terminated further examination of the merger.

AB Akmenės cementas is the sole cement manufacturer in Lithuania. Concretus Materials, together with the related undertakings, manufactures and trades cement products, such as concrete mix, ferroconcrete as well as concrete paving stones and slabs.

Having carried out a preliminary assessment of the intended merger, the KT determined that the implementation of the merger concerned could have significantly weakened competition in the relevant markets of cement, concrete mix, ferroconcrete as well as concrete paving and slabs. As a result of the merger, Concretus Materials would have gained a decisive influence on the decisions concerning activities of AB Akmenės cementas (e.g. regarding cement pricing), and, thus, together with the related undertakings could have restricted their competitors’ opportunities to compete when purchasing the cement from AB Akmenės cementas. As a result of the merger, the possibilities for other cement manufacturers to compete with AB Akmenės cementas for the trade of cement in Lithuania could have been restricted since one of the major buyers, Concretus Materials, could have limited its purchases of cement exclusively from AB Akmenės cementas.

Notices:

(1) Concentration – a merger or acquisition of control of another company.

(2) If the turnover of the companies participating in concentration exceeds the limits established in Article 8 of the Law on Competition, the concentration can be implemented only with the permission of the KT.

(3) Upon completing the examination of the notification, the KT adopts a decision to permit the implementation of concentration or to permit the implementation of concentration in accordance with the conditions and obligations established by the KT which are necessary to prevent the creation or strengthening of a dominant position or a substantial restriction of competition in a relevant market, or to refuse to grant permission to implement concentration if the concentration would result in creation or strengthening of a dominant position or substantial restriction of competition in a relevant market.

Communication Division