IP/01/1438
Brussels, 18 October 2001
Commission refers to Bundeskartellamt review of
Haniel/Fels deal in German building materials sector,
deepens probe into Dutch market
The European Commission has referred to the German Competition
Authority, the Bundeskartellamt, the examination of the impact of the
proposed acquisition by Haniel Baustoff-Industrie Zuschlagstoffe GmbH of
Fels-Werke GmbH in the German wall building materials markets. At the
same time, the Commission decided that the deal’s effect in the Dutch wall
building materials sector requires further review and started an in-depth
investigation.
Haniel is a German-based group active primarily in Germany in the manufacturing
and marketing of wall building materials such as sand-lime bricks, cellular concrete
products and in the transportation of building materials. Indirectly, Haniel also holds a
stake in the Dutch co-operative of sand-lime producers "CVK".
Fels is a German-based subsidiary of Preussag AG. It produces building materials
such as cellular concrete (known under the Hebel brand), plaster products,
plasterboard and dry cement products. In addition, its is active in the manufacture
and sale of prefab houses made of cellular concrete and the planning and
construction of production plants for cellular concrete.
According to the operation notified to the Commission under the European Union’s
Merger Regulation, Haniel proposes to acquire all shares in Fels from Preussag.
Referral request
On 28 September 2001, the German Competition Authority (Bundeskartellamt)
argued that the proposed concentration threatened to create or strengthen a
dominant position on the German market for wall building materials and asked the
Commission to refer the examination of that aspect of the deal to Germany in
application of Article 9 of the Merger Regulation 4064/89. Article 9 allows for such
referrals if a merger threatens to create or strengthen a dominant position as a result
of which effective competition would be significantly impeded on a distinct market
within a Member State.
According to the Bundeskartellamt’s preliminary assessment, the transaction risks to
create a situation where the new entity would hold a dominant position in particular in
brick building materials in several regional markets within Germany. The
Commission’s findings in its first-phase investigation are consistent with the
preliminary analysis made by the German Competition Authority.
The Commission believes that the Bundeskartellamt is best placed to assess the
competitive impact of the case on the brick wall building materials markets in
Germany, as this will require the investigation of local (sub-) markets and supply
relations. In addition, the Bundeskartellamt has recently investigated this sector in
Germany which gives it considerable expertise of the sector.
The German authority has four months to take a final decision. During this period,
both the Commission and the Bundeskartellamt will work closely together.
Dutch wall building materials probe
The Commission’s first-phase investigation also highlighted concerns regarding the
deal’s impact in the Dutch market for wall building materials sector which it will
assess further in an in-depth investigation.
The Commission's preliminary investigations indicate that through the sand-lime cooperative CVK, Haniel may, already at present, have a dominant position on the
Dutch market for wall building materials and that the acquisition of Fels might
strengthen that dominant position in the Netherlands. The Commission is concerned
that the merged entity might control the biggest part of the market without customers
being able to find low-priced alternative products.
The Commission has a total of four months to reach a final decision on these
aspects of the transaction. The opening of an in-depth investigation is a procedural
step which does not prejudice the final outcome.
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