• The President of UOKiK Tomasz Chróstny issued reservations in regard to concentration consisting in companies ArcelorMittal Poland and Morris creating a joint venture.
• The transaction may cause a limitation of competition on the domestic rolled rails sales market.
• The reservations are by no means determinative of the possible final ruling in this case.

The subject of the concentration is the establishment by ArcelorMittal Poland (AMP) and Moris of a joint venture. AMP produces and sells steel products, including rolled rails. Moris operates in the field of sales of steel products, including rolled rails purchased from producers (including AMP) and produces and sells welded rails. The rolled rails are produced at the smelter, while welded rails are manufactured by welding two or more rolled rails at a welding shop.

In this case, it is necessary to conduct market research and verify the data provided by the concentration participants. Due to the specificities of the industry, market data was collected from both manufacturers and distributors and final buyers of rails. The information collected indicates that concentration may lead to significantly limiting competition on the domestic rolled rail sales market. In addition, after the concentration, the new venture would be the only entity in Poland offering welded rails, which could lead to higher prices. That is why, UOKiK has presented reservations in this case.

- The concentration participants are the only significant competitors for each other from the perspective of the final buyer of the rails. Our analyses show that the creation of a joint venture can eliminate competitive pressure and, to a large extent, lead to higher prices for end users. Concentration may also limit market accessibility for new suppliers - says Tomasz Chróstny, President of UOKiK.

Concentration concerns:

In cases where there are reasonable grounds to believe that the concentration will result in restriction of competition, UOKiK submits reservations about the intended transaction to the entrepreneurs or entrepreneur. The reservations are provided along with a statement of grounds and are by no means determinative of the final outcome of the proceedings.

In accordance with the provisions of applicable laws, the undertakings involved have 14 days to respond to the reservations. This period may be extended by a further two weeks at the request of the undertakings involved.

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