FCCA opens in-depth investigation into the competition impacts of Enersense’s proposed acquisition of Voimatel

The Finnish Competition and Consumer Authority (FCCA) is initiating further proceedings regarding the proposed merger in which Enersense International Oyj would purchase Voimatel Oy.

Enersense is a Finnish listed company that offers telecommunications network design, construction and maintenance services to telecommunications operators and other network companies. Enersense’s service range also includes the construction and maintenance of electricity transmission networks, substations and wind farms. Voimatel is a Finnish company that provides services for the construction and maintenance of information and electricity networks and substations.

Based on the FCCA’s initial investigation, the merger may have adverse effects on competition in the market for telecommunications infrastructure services, especially regarding the construction and maintenance of fixed and mobile networks. This market is already concentrated, and the FCCA’s initial investigation indicates that following the proposed merger, only two players offering a broad range of services nation-wide would remain in several markets.

Enersense and Voimatel additionally have overlapping business operations in the maintenance services of substations and transmission networks. The FCCA will further investigate the competition effects of the transaction also on these markets.

The further proceedings will examine whether the merger may significantly impede effective competition in the Finnish market or a substantial part thereof. The FCCA may approve the merger as such, approve it conditionally or propose that the Market Court prohibit the deal. The further proceedings may take a maximum of 69 working days. The Market Court may extend the deadline for the further proceedings by at most 46 working days.

The FCCA’s decision contains some confidential business secrets of the parties. The decision cannot therefore be made public until after the business secrets have been removed.

Further information:

Tiia Sotamaa

Specialist

Lauri Kirkkola

Head of research