• The acquisition of Odlewnia Zawiercie by Meide Group does not pose a threat to public order, safety or health.
• UOKiK President Tomasz Chróstny did not object to the transaction.
• This was the first investment control proceeding to move to the second stage, meaning that it was conducted a control procedure.

Under the investment control regulations, the President of UOKiK examines, among other things, transactions concerning the acquisition, achievement of significant participation in, or achievement of dominance over entities whose business objectives include the manufacture and sale of arms and ammunition, as well as products and technologies for military or police use. Odlewnia Zawiercie has the legally required concession to conduct this kind of activity. 

The obligation to report transactions to the President of UOKiK applies to entities with their registered office or citizenship (for natural persons) from outside a member country of the EU, EEA and OECD. This was the case for the Chinese company Meide Group, which is active in the manufacture and sale of products (connectors) used in fire protection, water and gas installations.

The proceedings in this case was a two-step process due to the need to thoroughly investigate the transaction from the perspective of public safety and order. A thorough analysis showed no such threat, so the President of UOKiK did not issue an objection to the investment.

"The investigation showed that the transaction did not pose a threat to public order, safety or health. The manufacture and sale of weapons-related products represents a small percentage of the business activities of Odlewnia Zawiercie. I also asked the Minister of the Interior and Administration, the Minister of National Defence and the Minister of State Assets for an opinion. Neither of these authorities indicated any specific risks that would be associated with this transaction," says UOKiK President Tomasz Chróstny.

The investment control procedure is divided into two phases. The first stage is the preliminary investigation, which serves to separate cases that are simple and require no further investigation from those that are more complex. For cases concluded at this stage, the UOKiK issues a no-objection decision. Cases that may pose a serious threat to public order, public safety, or public health may be referred for proper control proceedings (stage two).

The proceedings concerning the achievement of dominance over Odlewnia Zawiercie by Meide Group was the 11th one concerning investment control and the first one that was passed to the second stage, meaning that it was conducted as a control procedure.

Details concerning the provisions for investment control and conduct of proceedings by the Office can be found in the published explanations.

Moreover, merger control proceedings, in which the President of UOKiK is examining whether the acquisition of Odlewnia Zawiercie by Meide Group may limit competition in the markets in which both companies operate, are still pending. 

Additional information for the media:

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