News, 24 October 2012
The FCA today decided to commence phase two investigations in a deal whereby Uponor Oyj (”Uponor”) and KWH-Yhtymä Oy (”KWH”) found a joint venture. The new joint venture will comprise Uponor's infrastructure business and the majority of the business of KWH's subsidiary Oy KWH Pipe Ab. The infrastructure pipe systems Oy KWH Pipe Ab (under-floor heating systems and plumbing systems) transfer to Uponor as part of the total arrangement.
Both Uponor and KWH manufacture different-sized plastic pipes, fittings, wells and other similar products designed for the construction and infrastructure technology. The said products are primarily used to conveying and distributing rainwater, sewage, pressurized water and gases to protect different cables. The parties have a very large market share in the market.
It will be investigated during phase two, whether the present deal may significantly impede effective competition in the Finnish markets or a substantial part thereof, in particular as a result of the creation or strengthening of a dominant position. During phase two, the FCA may approve the deal as such, attach conditions on its implementation or propose that the Market Court prohibit the deal. Phase two proceedings may last a maximum of three months under the Competition Act.
The decision yesterday issued by the FCA contains several business secrets by the parties and it can only be published after these have been removed. A public version of the decision will be published on the FCA's webpage as soon as it is completed.
Senior Research Officer Hanna Kaiponen
Head of Research Maarit Taurula