Merger between ready-mixed concrete manufacturers: Rohrdorfer can acquire Ganser

Date of issue:24.08.2021

After second-phase investigations, the Bundeskartellamthas cleared plans by Südbayerisches Portland-Zementwerk Gebr. Wiesböck& . , Rohrdorf (Rohrdorfer), to acquire all the shares in Ganser Baustoffe & , Kirchstockach (Ganser). Both companies are manufacturers of ready-mixed concrete; Rohrdorfer is also active on the upstream market for cement.

Andreas Mundt, President of the Bundeskartellamt: 'The market presence of both manufacturers is significant so that the merger project had to be examined in detail. The merger particularly affects two regional markets for ready-mixed concrete in the Greater Munich area. Rohrdorfer will acquire Ganser's ready-mixed concrete plants in Aubing and Kirchstockach. One main focus of the examination was the question whether the remaining ready-mixed concrete manufacturers would still be exposed to enough competitive pressure even after the merger. Having examined the merger, we have no serious competition concerns about the project. The merger is not expected to result in opportunities or incentives for market participants to become less competitive.'

In the ready-mixed concrete sector the Bundeskartellamtalways examines regional markets since the radius within which concrete is transported to customers is limited. The authority assumes that this radius corresponds to a travel time of approx. 40 minutes around the ready-mixed concrete plants in question. In addition to the regional markets, the Bundeskartellamtalso analysed the Greater Munich area (50 around the city centre) where especially due to the ties between Rohrdorfer and HeidelbergCement AG (Heidelberger), which holds a minority share in Rohrdorfer, the parties in the present case have a significant market position.

When assessing the merger project, the Bundeskartellamtextensively examined whether the merger would result in opportunities or incentives for ready-mixed concrete manufacturers vertically integrated into cement groups to restrict the competitive pressure among them. In particular, it was examined whether the merger was expected to reduce the intensity of competition between the remaining competitors in both regional markets surrounding the Ganser plants in Aubing and Kirchstockach, or even in the Greater Munich area. For this purpose, the structural factors relating to the ready-mixed concrete markets concerned were examined and extensive market enquiries were carried out among customers and competitors. As a result of this analysis, it can be assumed that sufficient competition currently exists between the suppliers of ready-mixed concrete. The existing competition is unlikely to be eliminated by Rohrdorfer's acquisition of Ganser. The acquisition is also not expected to increase Rohrdorfer's scope of action to the extent that it is no longer sufficiently controlled by competition. The joint market share in the regional markets in question is below 40 percent.

Since the merger is not expected to significantly impede effective competition, the Bundeskartellamtcleared the proposed acquisition.

Press release (pdf)