European antitrust regulators are set to block the proposed acquisition of German cement producers, HeidelbergCement and Schwenk’s joint bid for Mexican peer, Cemex’s Croatian unit barring a last minute change of mind. The European Commission, which opened an investigation into the deal in October last year, has not been convinced so far by the companies’ offer to lease a terminal on the Dalmatian coast to a rival to address its concerns.
The EU competition authority has said the deal may eliminate a significant player in a concentrated regional market, boost Cemex Croatia’s market power in southern Croatia and lead to price hikes in grey cement.
HeidelbergCement and Schwenk want to buy Cemex Croatia through their Hungarian joint venture, Duna Drava Cement (DDC) in a deal worth about 250 million euros. DDC is the largest importer in the area while Cemex Croatia is the biggest producer.
Image source: HeidelbergCement Group