Brussels, 12 th June 2009
Mergers: Commission approves proposed acquisition of the Polish logistics operations of PCC SE by Deutsche Bahn
The European Commission has cleared under the EU Merger Regulation the proposed acquisition of the Polish logistics operations of PCC SE of Germany by German rail company Deutsche Bahn AG (DB). The Commission has concluded that the proposed transaction would not significantly impede effective competition in the European Economic Area (EEA) or any substantial part of it.
DB is the German state-owned railroad company active in, inter alia , passenger transport, freight forwarding and logistics (including freight transport) as well as ancillary services.
PCC SE 's logistics activities in Poland are mainly conducted through the Polish companies PCC RAIL S.A., PCC Rail Rybnik S.A. and Trawipol Sp. z o.o (PCC Logistics). These operations cover in particular railway activities, including train haulage/sidings, terminal and fleet management and freight forwarding, port services and sand mining.
The transaction concerns mainly rail freight services in Poland, Germany and cross-border traffic between these two countries. These markets, notwithstanding the full liberalisation of rail freight transport in the EU since 2007, are still characterised by limited competition and strong national incumbents.
In the national Polish rail freight transport market the state-owned incumbent Polish National Railways (PKP) is by far the most significant player. DB is not active in this market and only provides cross-border traffic mainly in cooperation with PKP. PCC Logistics, which is almost exclusively active in the Polish market, has only very limited market shares compared to PKP. The transaction would not lead to an increased market share for PCC in the rail freight transport market. The Commission's investigation found that the merged entity might be even better suited to increase competition in the Polish rail freight transport market and be able to provide seamless cross-border transport for its customers.
Concerning the markets for freight forwarding and other logistics services, both parties only have overlaps in the Polish market with only limited market share. Even after the transaction, the freight forwarding markets would remain fragmented with strong competitors.
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