The Georgian Competition and Consumer Agency (GCCA) has approved a concentration in the construction and development market involving „Domus Development“ LLC’s acquisition of a 50% share in „Domus Seaside“ LLC.
A market analysis conducted by the Agency determined that in 2023, the total value of the residential and non-residential construction market in Georgia amounted to 3,127,143,000 GEL, with approximately 300 undertakings operating in the sector. Prior to the concentration, the Herfindahl-Hirschman Index (HHI) stood at 588.7, indicating a low-concentration market. Following the transaction, the HHI increased by just 2.23 points, reaching 590.9, which remains within the low-concentration range. Thus, the analysis confirmed that the market remains unconcentrated, and the increase in the Herfindahl-Hirschman Index resulting from the concentration is insignificant.
Accordingly, based on the Agency's market analysis, the assessed market structure, and the market shares of the parties involved, it was determined that the concentration will not have a significant impact on the competitive environment.
For information: 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. 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 2025, the GCCA has approved 4 concentrations. Additionally, the Agency is currently reviewing 2 concentration cases.
