Brussels, 4th August 2003
Commission clears Dutch joint venture between Cementbouw and ENCI
The European Commission has cleared the creation of a joint venture between building materials producers Cementbouw and ENCI, both based in the Netherlands. On 1 July the Commission received notification of an agreement whereby Dutch undertakings Cementbouw Betonmortel B.V. and ENCI Holding N.V. will create a joint venture, which will comprise the current aggregates business of ENCI.
The Joint Venture will produce and sell aggregates, such as sand, gravel and crushed rock, for the concrete and asphalt industry.
The Commission's investigation showed that the combined market shares of Cementbouw and the JV in the Dutch aggregates market are low and that the increase in market share does not present any risk of a dominant position.
The transaction gives rise to a vertically affected market for ready-mixed concrete in the Netherlands, a market which is situated downstream of aggregates and in which both ENCI and Cementbouw hold significant positions. The Commission's investigation indicated that the creation of the Joint venture will in no way disadvantage the parties' aggregates customers (ready-mixed concrete competitors) or lead to co-ordination between its parents.
Cementbouw and ENCI produce and trade building materials such as ready-mixed concrete, mortar, aggregates and related construction products. ENCI is ultimately controlled by the Heidelberg Cement group, which is active in the production and sale of cement and cement related products. Cementbouw is controlled by CVC Capital Partners Group, an investment funds company.