The Georgian Competition and Consumer Agency (GCCA) has approved two concentrations in the gray cement production market. Specifically, the case involves the acquisition of equal 50% shares in ‘Max Import’ LLC by Levan Varsimashvili and Gia Varsimashvili.
The GCCA's analysis revealed that, in 2023, 52 companies were active in the gray cement production market nationwide, with a total market volume of 2 642 150 tons. The market is currently highly concentrated, with a Herfindahl-Hirschman Index (HHI) of 2876.44 units. In its assessment, the GCCA considered the market shares of ‘Max Import’ LLC and the related undertakings connected to Levan and Gia Varsimashvili. The analysis found that the HHI would increase by only 55.76 points, reaching 2,932.2 units after the concentrations. Based on the Agency's assessment, the concentration does not significantly impact the competitive environment and is deemed compatible with the current market dynamics.
It is important to note that the concentrations were implemented without prior notification. As a result, the parties were fined in accordance with the legislation and were instructed to submit an application to the Agency regarding the implemented concentration.
Concentration is subject to notification to the Agency if the aggregate (total) joint income of its participants on the territory of Georgia, exceeds 20 million GEL and the joint income of at least two persons participating in the concentration exceeds 5 million GEL for the previous financial year. Implementing the concentration without prior notification to the Agency may result in a fine of up to 5% of the annual turnover of the previous year. The fee for reviewing a concentration notice is GEL 5,000. In case of bypassing the Competition Agency subject to the mandatory notification, before the Agency reviews the notification or despite the negative conclusion, the person with the obligation to submit the notification shall be fined
In 2024, the Georgian Competition and Consumer Agency (GCCA) approved 14 concentrations, with 6 cases currently under review.
