J. Sroczyński for WuW No. 6/2016 – Conditional authorisation for a concentration involving Gorazdze Cement

Gorazdze Cement, a company from the Heidelberger group and a major Polish producer of cement and ready-mix, may take control of Duda Kruszywa and Duda Beton, a producer of natural aggregates and ready-mix, on the condition to exclude from the transaction a ready-mix plant in Olszowa in south-western Poland. The OCCP was assessing this notification in a two-phase proceeding which involved a market test carried out to define the relevant geographic market. The OCCP has found that the geographic market is regional, covering the radius of 25 kilometers from the plant. This resulted in competition concerns being raised in relation to the Olszowa plant. Faced with those concerns, the parties have decided to carve-out Olszowa before closing the sale transaction. The carve-out commitment eliminated the need to divest Olszowa, which would be necessary if the plant would have been conditionally first acquired by Gorazdze Cement.

Xella Polska, a producer of wall building materials, has withdrawn its notification of an intention to take control of Grupa Silikaty, a producer of silicate building blocks. Following a market test carried out in the second phase of the proceedings, the OCCP raised competition concerns related to seven regional markets defined as the area of 200 kilometers from the pertinent production plant. The OCCP claimed that competition can be significantly limited on those markets. In this situation, Xella Polska has decided to abandon the transaction and withdrew the notification.

The OCCP has published new guidelines related to the procedural issues of settlement decisions. Settlements, introduced in 2015, enable a 10 percent fine reduction in exchange for an admission of the violation. The OCCP has also published the updated versions of the guidelines concerning commitment decisions and the imposition of fines.

The Prime Minister has recalled Mr. Adam Jasser from the function of the OCCP’s President. Mr. Jasser will continue to perform his duties as acting president until a new president is appointed in an open competition.

J. Sroczyński, Wirtschaft und Wettbewerb. Developments in national competition law, No. 6/2016.