FCCA approves acquisition of Konevuori by TerraWise

The Finnish Competition and Consumer Authority (FCCA) approved on 28 June 2017 the acquisition of Konevuori Oy by TerraWise Oy. The FCCA has concluded that the acquisition will not impede, as referred to in the Competition Act, effective competition in the Finnish market. The market share of the parties in the earth construction and stone products sales segment will remain small even after the acquisition, with several bigger competitors in the markets.

TerraWise is the parent company of the TerraWise group, operating in the earth construction, municipal engineering and landscaping business, and trade in stone and earth products.

Konevuori is engaged in the earth construction business, excavation and trade in earth construction machinery.

The FCCA’s decision includes business secrets of the parties involved. The decision cannot be published until the business secrets have been removed, i.e. in around two weeks’ time.

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.