News, 9 November 2011
On 2 November 2011, the Market Court conditionally approved an acquisition whereby NCC Roads Oy acquires the asphalt paving business of Destia Oy and Destia Kalusto Oy. The FCA had proposed that the Market Court ban the deal, because the commitments proposed by NCC to the FCA did not prevent the harmful effects for competition resulting from the transaction.
The FCA is satisfied with the decision by the Market Court because it imposes effective conditions on the concentration between NCC and Destia, which will eliminate the harmful effects otherwise accruing to competition. The Market Court held like the FCA that the impediment of competition could not have been avoided by the commitments earlier proposed by NCC to the FCA. It was also the view of the Market Court that making the proposal to ban the deal remained the only option for the FCA.
Like the Market Court, the FCA cannot impose conditions which the parties have not approved. Since the Market Court has approved all the grounds presented by the FCA in its proposal and imposed efficient conditions on the deal, there is no cause for the FCA to appeal the Market Court’s decision to the Supreme Administrative Court.
Court confirmed FCA’s merger analysis
In its decision, the Market Court found that as a result of the acquisition, joint dominance is created for NCC and Lemminkäinen Infra Oy in the asphalt mass market in the capital city region.
The Market Court finds that the market structure created through the deal provides incentives for concerted activities between NCC and Lemminkäinen, which has serious and long-lasting ill-effects in the markets of asphalt mass and asphalt paving contracts. The Court also held like the FCA that the foreseeable reactions by competitors and customers do not jeopardize the results expected of the coordination.
The Market Court approved the transaction on the conditions it has imposed, which e.g. require that NCC rent to the competitor the site in Nikkilä, Sipoo, for the production of asphalt mass.
Head of Research Maarit Taurula