The European Commission (EC) has vetoed the proposed sale of Cemex Croatia to Duna Dráva Cement, a joint venture owned by HeidelbergCement and Schwenk Zement. As one of the closing conditions of the sale was to receive clearance from the EC, the transaction will not close as planned.
“Cemex will maintain its operations in Croatia and continue to operate them and serve its customers with high-quality products and reliable services,” the company said in a statement.
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.
As a result, 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. As a result, the combined market of the parties involved in the transaction would have exceeded 45 – 50% overall – and up to 70% in Dalmatia.
“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.
“HeidelbergCement and Schwenk failed to offer appropriate remedies to address these concerns,” Vestager continued. “Therefore, the commission has decided to prohibit the takeover.”
Read the article online at: https://www.worldcement.com/europe-cis/06042017/takeover-of-cemex-croatia-vetoed-by-ec/