The European Commission has cleared the proposed acquisition of German construction company Kirchner Holding GmbH by Strabag SE of Austria, the Commission said Tuesday.
The Commission, the executive body of the European Union (EU), has also decided to partially refer the case to Germany's Federal Cartel Office, which will assess the impact of the transaction on the regional asphalt market.
Both companies are active in construction markets, including road construction, and in several building materials markets.
In view of the parties' low market shares in the construction markets and the local building material markets, the Commission concluded that the transaction would not significantly impede effective competition in the EU.
Kirchner is active in all fields of construction, in particular road construction, structural engineering and production and processing of raw material such as asphalt mix used for road surfacing and broken natural stone for construction. The geographic focus of Kirchner's activities is in central and eastern Germany, but is also active in other parts of Germany as well as in Austria and Poland.
Strabag provides construction services and building materials worldwide. Although it is one of the larger players in road construction in Germany, its market share in this relatively fragmented sector are limited.
The Commission's assessment showed that, Kirchner being a relatively small player, the proposed transaction would not bring about any significant changes to the structure of the construction or building materials markets other than the Erfurt regional market for asphalt mix.
Source:Xinhua
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