MERGERS: AMO SR approved the merger of undertakings GEOSAN INVESTIČNÍ, a.s., and VÁHOSTAV - SK, a.s.

Updated: 16.09.2021

AMO SR approved a merger grounded in the acquisition of indirect exclusive control by undertaking GEOSAN INVESTIČNÍ, a.s., over the undertaking VÁHOSTAV - SK, a.s.

On 24 August 2021 the Antimonopoly Office of the Slovak Republic, the Division of Concentrations (hereafter “the Office”) approved a merger grounded in the acquisition of indirect exclusive control by the undertaking GEOSAN INVESTIČNÍ, a.s., Kolín, the Czech Republic (hereafter “GEOSAN”) over the undertaking VÁHOSTAV - SK, a.s., Bratislava (hereafter “VÁHOSTAV”).

The company GEOSAN belongs to the group GEOSAN, which operates primarily in the Czech Republic in the field of construction activities. It develops its activity through subsidiaries mainly in the field of construction services (residential, civil and industrial construction, the construction of civil engineering), services for the remediation of old environmental burdens, the supply and installation of steel structures, cladding and the roofs of buildings, as well as real estate construction (development).

Neither the company GEOSAN nor its subsidiaries operate in the construction industry in the territory of the Slovak Republic (hereafter “the SR”).

The company VÁHOSTAV belongs to the group VÁHOSTAV-SK, which is active in the field of construction activities. It develops its activity through subsidiaries in the SR, especially in the field of construction services (civil engineering construction works), the production of prefabricated buildings for the purposes of construction and the production of asphalt mixtures. Abroad, the group VÁHOSTAV-SK performs construction or business services through organizational units and its subsidiaries in the Czech Republic, Romania, the Russian Federation and Georgia.

The Office found out that at present the activities of merging parties in terms of goods overlap horizontally only in the field of civil engineering construction works, while the group GEOSAN did not operate in this field in the SR and the group VÁHOSTAV-SK focused its activity mainly in the SR. The Office further found out that the merging parties did not meet in tenders nor public procurements, neither individually nor as the members of an association, due to their different geographical focus.

The Office came to the conclusion that even with the narrowest possible geographical definition of market (the territory of the SR), there are no competition concerns regarding the horizontal overlap. The Office examined also all possible alternatives to relevant markets with regard to a vertical relationship and it concluded that neither in this regard there were competition concerns.

After evaluating documentation and information obtained, the Office came to the conclusion that the assessed merger is in accordance with the Article 11 Paragraph 1 of the Act on Protection of Competition, as it will not significantly impede effective competition in relevant market, in particular as the result of creating or strengthening of dominant position.

The decision came into force on 25 August 2021.


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