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SAFEROAD BALTIC WILL BE ABLE TO IMPLEMENT THE MERGER FOLLOWING COMMITMENTS

The Competition Council has cleared the acquisition by Saferoad Baltic of Gatas. The clearance was granted following commitments by Saferoad Baltic to preserve effective competition in the markets for the supply of road barrier systems and their installation and maintenance.

When examining the merger notification received on 17 October 2024, the institution’s experts collected information from Saferoad Baltic, which supplies road barrier systems, Gatas, which installs and maintains these systems, and their competitors.

The Competition Council agreed with the Merger Supervision Group’s conclusion that, in the absence of Saferoad Baltic’s commitments, the transaction would result in the creation or strengthening of a dominant position or significant restriction of competition in the markets for the supply of road barrier systems and their installation and maintenance in Lithuania.

It was determined that the negative impact of the merger would arise primarily from the fact that the merged entity would have the ability and incentives to restrict Gatas's competitors' access to road barrier systems. Additionally, both the supply and installation and maintenance markets for these systems are highly concentrated, with few companies operating in them. As a result, prices for road barriers and related services could increase following the merger. The institution’s experts also assessed the potential for the merging parties to exchange confidential information. Some of the parties’ competitors indicated that their position would worsen in comparison to that of the merged entity.

In response to the Merger Supervision Group’s conclusions, Saferoad Baltic submitted commitments on 16 April, proposing to offer and supply road barriers to any competitor of Gatas on fair and non-discriminatory terms and conditions which would be no less favourable than those applied to Gatas. Furthermore, Saferoad Baltic and Gatas committed not to exchange confidential information with one another. Taking into account feedback from interested third parties, commitments were supplemented with a provision stating that, in the event of a significant change in market conditions leading Saferoad Baltic to supply road barriers to competitors on different terms than those specified in the original offer, the company would apply analogous terms and conditions to Gatas as well.

Having concluded that the proper and timely implementation of the proposed commitments will eliminate the negative effects on competition identified by the Authority, the Competition Council granted clearance for the merger.

The implementation of the commitments will be monitored by an independent trustee with the required competence, experience, and resources. The trustee will be subject to approval by the Competition Council.

The decision may be appealed to the Regional Administrative Court within one month from the date of its delivery or publication on the Competition Council’s website.

A non-confidential version of the decision will be published on the Authority’s website in the near future.

Last updated: 21 05 2025