11 December 2017
The FCCA has asked the Finnish Market Court to extend the deadline for proceedings on the YIT and Lemminkäinen acquisition until 26 January 2018. Without the deadline’s extension, the consideration period for the acquisition would end on 28 December 2017. Given the scope and current phase of the proceedings, in the view of the FCCA and the parties to the acquisition an extension any shorter than the one requested would not be sufficient for the completion of the proceedings.
On 28 August 2017, the FCCA was notified of an arrangement whereby Lemminkäinen Group would be merged with YIT Group. YIT is a construction company that develops, builds and repairs homes, offices, infrastructure and entire areas. Lemminkäinen is a construction company engaged in building and infrastructure engineering and the sale of stone products.
The FCCA began further proceedings on the acquisition on 28 September 2017, because on the basis of the FCCA's preliminary investigations, the acquisition may have adverse impacts on competition in the building and infrastructure engineering markets. To determine the merger’s effects on competition, the FCCA has gathered a wide range of information from the construction markets and individual construction projects, and both public and private customers. While still gathering such information, the FCCA has been unable to complete its investigation of the merger’s effects on competition.
According to the Competition Act, the FCCA may approve the acquisition as such, attach conditions to the approval or request that the Finnish Market Court prohibit the acquisition.
Read more:
FCCA to further investigate competition effects of acquisition between YIT and Lemminkäinen (The FCCA press release 28.9.2017)
Further information: Senior Research Officer, Martina Castrén, tel. +358 29 505 3325
According to the Competition Act, the FCCA must be notified of the transaction if the combined turnover of the parties to the corporate transaction exceeds 350 million euros and the turnover of at least two of the parties resulting from Finland exceeds 20 million euros for both. FCCA approves a corporate transaction if it has no harmful impacts referred to in the Competition Act. FCCA will intervene in corporate transactions if its investigations suggest that the acquisition substantially impedes effective competition on Finnish markets or a substantial part of the markets, particularly through the creation or reinforcement of a dominant market position.
Read more about merger control