April 5 (SeeNews) - The European Commission said on Wednesday it has prohibited the proposed takeover of Cemex Croatia by HeidelbergCement and Schwenk under the EU Merger Regulation.
Following an in-depth investigation into the proposed deal, the Commission had strong concerns that the takeover would have significantly reduced competition in grey cement markets and increased prices in Croatia, it said in a statement.
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"We had clear evidence that this takeover would have led to price increases in Croatia, which could have adversely affected the construction sector. HeidelbergCement and Schwenk failed to offer appropriate remedies to address these concerns," Commissioner Margrethe Vestager, in charge of competition policy, is quoted saying.
"Therefore, the Commission has decided to prohibit the takeover to protect competitive markets for Croatian customers and businesses. We will continue enforcing competition rules equally across the European Union, no matter where companies are based," she noted.
On September 5, HeidelbergCement and Schwenk notified to the Commission their acquisition of Cemex Croatia via a joint venture company Duna Drava Cement (DDC), based in Hungary.
Cemex Croatia is currently the largest cement producer in the country, operating three profitable and valuable plants in southern Croatia, near Split.