HeidelbergCement have reacted to the European Commission’s (EC) decision to block the takeover of Cemex Croatia by Duna Drava Cement, a subsidiary of HeidelbergCement and Schwenk Zement.
“We take note of the decision, but disagree with this prohibition because we see a number of strong points that argue for the different conclusion not to block this transaction,” HeidelbergCement said in a statement to World Cement. “Together with the management of Duna Drava Cement and our joint venture partner Schwenk Zement we will diligently review the details of the decision once available and analyse our options going forward.”
The announced that they would veto the deal as the takeover would have “eliminated competition between companies that were competing head-to-head for the business of Croatian cement customers,” the EC said in a statement, resulting in an increase in prices.
“We had clear evidence that this takeover would have led to price increases in Croatia, which could have adversely affected the construction sector,” said Margrethe Vestager, European Competition Commissioner.
Cemex Croatia operates three cement plants, seven concrete plants, and two aggregates quarries, as well as a network of maritime and land-based terminals in Croatia, Bosnia-Herzegovina, and Montenegro. DDC and HeidelbergCement are the largest importers of cement into Croatia. DDC imports from plants in Hungary and Bosnia-Herzegovina, while HeidelbergCement imports from a plant in Italy.
Read the article online at: https://www.worldcement.com/europe-cis/06042017/heidelbergcement-reacts-to-ecs-veto-of-cemex-croatia-deal/