Europe's antitrust regulator has reportedly objected to Cemex's plan to acquire Holcim's Spanish units, according to person familiar with the matter, denting the Mexican cement producer's hopes of getting EU approval without concessions, Reuters news agency writes. Cemex and Holcim unveiled the deal in August 2013, part of which included the Swiss-based peer taking over Cemex's German businesses. The European Commission cleared this deal unconditionally earlier this month. But the Spanish part triggered
Europe’s antitrust regulator has reportedly objected to Cemex’s plan to acquire Holcim’s Spanish units, according to person familiar with the matter, denting the Mexican cement producer’s hopes of getting EU approval without concessions, Reuters news agency writes.
Cemex and Holcim unveiled the deal in August 2013, part of which included the Swiss-based peer taking over Cemex’s German businesses. The European Commission cleared this deal unconditionally earlier this month. But the Spanish part triggered an in-depth probe by the EU competition watchdog in April. Its preliminary review showed that the takeover would substantially curb competition in the grey cement market in certain parts of Spain.
“The European Commission has sent a statement of objections to the companies,” the person familiar with the matter is quoted as saying by Reuters, referring to a document which backs up the EU watchdog’s views that the deal would be a significant impediment to competition.
Reacting to the claimed antitrust regulator objection, Reuters quote Cemex saying: “We cannot comment and the process is following its normal course. Proper disclosure will be made when we have to make it.” Commission spokesman for competition policy, Antoine Colombani, and Holcim declined to comment when approached by Reuters.
Companies typically allay regulatory concerns by offering concessions such as asset sales or pledges giving rivals access to key infrastructure, networks or key technology. The Reuters source said Cemex had offered some concessions during the Commission’s preliminary review but these were not considered to be sufficient. The Commission has set a September 5 deadline for its decision.
