MERGERS: AMO approved merger of PKP CARGO and Advanced World Transport B.V.
On March 30, 2015 the Antimonopoly Office of the Slovak Republic, Division of Concentration approved the merger consisting in acquisition of direct exclusive control of the undertaking PKP CARGO Spółka Akcyjna, Poland (PKP CARGO) over the undertaking Advanced World Transport B.V., Amsterdam, the Netherlands (AWT).
PKP CARGO belongs to the PKP group and the holding company of this group is company Polskie Koleje Państwowe S.A. (PKP SA) having an exclusive control over the company PKP CARGO and its subsidiaries. The entire share of the company PKP SA is owned by State Treasure of the Republic of Poland.
Company AWT is owned by Zdeněk Bakala, company The Bakala Trust and company Minezit SE. Company AWT practically fulfills only holding functions. It has subsidiaries in the Czech Republic, Hungary, Poland and Slovakia.
According to the findings of the Office the activities of groups PKP and AWT overlap in the market of rail freight transport and market of forwarding services (in more EU countries including the Slovak Republic) as well as in the market for repair services of repairing rolling stocks and siding services. Regarding the mutual traceability of mentioned services the merger has also the vertical dimension.
When assessing the transaction in the market of rail freight transport the Office found that PKP CARGO is the biggest operator in the market of rail freight transport in Poland. In Slovakia the company Cargo Slovakia is the dominant player. Market shares of groups PKP and AWT in the territory of the Slovak Republic do not reach the intensity of the affected markets. The merger will not change the structure of market in Slovakia and the Office did not identify competition concerns in this area. The Office also concluded that the transaction does not raise competition concerns either in the provision of sided services, repair services of rolling stock and forwarding services.
After assessment of all acquired materials and information the Office concluded that the assessed merger does not infringe effective competition in the relevant market, mainly as result of creation or strengthening of dominant position and the merger was approved.
Decision came into force on April, 14, 2015.