FCCA opens in-depth investigation into Caverion’s proposed acquisition of Maintpartne

The Finnish Competition and Consumer Authority (FCCA) has initiated further proceedings regarding the proposed merger in which Caverion Industria Oy would purchase Maintpartner Group Oy. 

Caverion specialises in technical solutions for buildings and industrial operators, including maintenance services for industrial facilities. Maintpartner offers operation and maintenance services for various industrial sectors, as well as project engineering and installation services to complement maintenance operations.

Based on the FCCA’s initial investigations, the combined market shares of the parties to the merger might rise significantly higher than the estimated figures presented. Based on the initial investigation, the market shares become particularly high in comprehensive outsourcing of industrial maintenance services. The combined market share of Caverion and Maintpartner is notably high also in the segment of large hydro-electric power plants. Furthermore, according to the FCCA’s preliminary information, the concentration faces very limited competition in certain localities. In the first phase of its investigations, the FCCA has consulted competitors, customers and suppliers through requests for statements and information.

The FCCA considers it important to continue investigating the competition impact of the merger. In its in-depth investigation the FCCA will examine whether the merger may significantly impede effective competition in the Finnish market or a substantial part thereof. As a result, the FCCA may approve the merger as such, approve it conditionally, or propose that the Market Court prohibit the deal. An in-depth investigation for mergers which were notified before the amendments to the Competition Act came into force may last up to three months. The Market Court may suspend the deadline by at most two months.

Further information:

Senior Specialist Anu Ala-Outinen, tel. +358 (0)29 505 3010
Head of Research Mikko Heinonen, tel. +358 (0)29 505 3162

According to the Competition Act, a merger must be reported to the FCCA if the combined turnover of the parties to the concentration exceeds 350 million euros and if the turnover of at least two of the parties resulting from Finland exceeds 20 million euros for both. The FCCA approves the merger provided that it will not result in any of the negative impacts mentioned in the Competition Act. The FCCA will intervene in the merger if its investigation indicates that the merger would significantly impede effective competition on the Finnish market or a substantial part thereof, in particular as a result of the creation or strengthening of a dominant position. If required, the processing of the merger notification is carried out in two phases. The maximum duration of the first phase of processing of mergers for which notification was given on 17 June 2019 or later is 23 workdays. In the merger case at hand, the time limits for proceedings shall be applied pursuant to the old Competition Act, according to which the initial phase of processing lasts one month. If it is clear that the merger will not have negative effects on competition or if the negative effects can be prevented through the conditions proposed by the parties involved, the merger is approved after this initial phase of processing. If this is not the case, the FCCA makes the decision to submit the matter for further investigation in which the merger and its competition effects are comprehensively examined.

Further information about merger control.