On 5 April 2017, the Commission announced that it has prohibited the acquisition of Cemex Croatia by HeidelbergCement and Schwenk through their joint venture Duna Dráva Cement. All companies are active on the Croatian cement markets. The deal was notified to the Commission in September 2016 and led to an in-depth investigation.
The Commission raised concerns that the acquisition would reduce competition in the Croatian markets for grey cement, especially when considering (i) that the combined market shares of the parties would have been around 45 to 50 percent and in parts of the country over 70 percent, (ii) that the competition from Duna Dráva Cement, which recently had been pursuing a strategy to increase sales in Croatia, would be eliminated, (iii) that the Commission had found evidence forecasting appreciable cement price increases after the acquisition and (iv) that the remaining domestic cement suppliers and importers would not have been able to compete effectively with the combined entity. The parties proposed remedies in order to address the Commissions concerns, namely to grant access to a cement terminal in southern Croatia. However, the Commission concluded that the proposed remedies would not have allowed a supplier to compete effectively and on a lasting basis with the combined entity. Therefore, the Commission prohibited the proposed acquisition.
Source: Commission Press Release 05/04/2017