Poland’s Office of Competition and Consumer Protection (UOKiK) has given Górażdże Cement the go-ahead to take over Duda Kruszywa and Duda Beton, two smaller Polish cement producers. The company must however exclude a cement mixing plant in Olszowa to ensure competition is not restricted.

A Polish subsidiary of the international HeidelbergCement Group, Górażdże will acquire 100% of the share capital of the two companies, which will continue to produce and sell aggregate and ready-mix concrete.

UOKiK’s preliminary analysis of the takeover showed that it would be necessary to extend proceedings and conduct further market analysis, which subsequently looked at a full 112 of the three companies’ competitors, particularly the volume and value of their sales, the size of their sales’ territory, and their opinions on the potential takeover.

In its further investigation, UOKiK determined that the geographic market for ready-mix concrete extends to 25 kilometers from the site where the cement is produced. Given these dimensions, competition on the market surrounding Duda Beton’s cement mixing plant in Olszowa would be significantly reduced were the takeover allowed to go through unchallenged. The three companies already command the highest market share in that area, and after the acquisition the expanded enterprise would significantly exceed the 40 percent share that marks a dominant position. In response, Górażdże submitted a proposal that would have it exclude all of the financial and non-financial assets that make up the plant in Olszowa, hence removing the threat to competition and assuaging the Authority’s concerns.

Additional information for the media:

Press Office, UOKiK
Pl. Powstańców Warszawy 1, 00-950 Warsaw
Phone.: +48 22 827 28 92, +48 22 55 60 314, +48 22 55 60 430
E-mail: [SCODE]Yml1cm9wcmFzb3dlQHVva2lrLmdvdi5wbA==[ECODE]