The Finnish Competition and Consumer Authority (FCCA) has today conditionally approved the acquisition of A-Katsastus Group by MB Equity Fund V Ky. FCCA made the transaction conditional on that the Muster software used in vehicle inspections be offered to competitors with the current terms for the duration of 24 months.
On June 25 2019, FCCA was notified of an arrangement under which MB Equity Fund V Ky will acquire A-Katsastus Group. MB Funds is a Finnish private equity investment firm, the portfolio of which includes Protacon, a company that developed the Muster software used in vehicle inspections. A-Katsastus provides vehicle inspection services and registrations, arranges driving tests, performs vehicle damage inspections and provides vehicle damage repair, maintenance and spare part services in addition to the provision of testing, repair shop equipment and maintenance services.
On 26 July 2019, FCCA submitted the acquisition to further investigation because, based on the initial investigation conducted by the Agency, the concentration resulting from the merger might weaken the opportunities available to the companies competing with A-Katsastus to effectively compete in the vehicle inspection market.
The investigations indicated that A-Katsastus has a significant national market share and, also, a substantial market share in many of the provinces. The concentration to emerge from the merger also possesses the Muster software widely used by inspection companies, which, according to the investigations carried out by FCCA, has no credible alternatives. Furthermore, the acquisition is associated with a risk of sensitive information on the competitors of A-Katsastus being transferred to the possession of A-Katsastus in a manner that would impede competition.
In order to resolve the matter and to remove any competitive disadvantages, MB Funds and Protacon commit to offering the Muster software to the current and new customer with the current terms for the duration of 24 months from the date on which FCCA hands down its decision. Furthermore, MB Funds and Protacon commit to not transfer sensitive information on Protacon Group’s inspection company customers to the inspection business of A-Katsastus Group and to not use such information in any way in said business.
The decision handed down by FCCA contains confidential business secrets of the parties. The decision cannot therefore be made public until after the business secrets have been removed.
FCCA opens in-depth investigation into MB Funds’ proposed acquisition of A-katsastus Group, FCCA’s press release dated 30 July 2019
More information: Senior Specialist Laura Kauppila, tel. +358 29 505 3335, email@example.com