The Georgian Competition and Consumer Agency (GCCA) has approved the concentration implemented through the acquisition of a 100% shareholding in LLC “Medegi” by LLC “Saba Invest”, finding it compatible with the competitive environment.
The parties to the transaction, together with their respective affiliated undertakings, operate in the provision of construction, rehabilitation and project design services.
Within the framework of its market assessment, and based on information obtained from the National Statistics Office of Georgia, the Agency established that, as of 2024, more than 6 000 economic operators were active in the relevant sector. The total market size amounted to GEL 18 859 222 588. The Herfindahl-Hirschman Index (HHI) prior to the transaction stood at 38.42, while the change resulting from the concentration (ΔHHI) amounted to 2.25.
On this basis, the Agency concluded that the relevant market is characterised by a low level of concentration. The market shares of the notifying parties and their affiliated undertakings are limited, and the increase in market concentration (ΔHHI) is insignificant.
In accordance with Georgian legislation, 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 2026, the Georgian Competition and Consumer Agency has approved 4 concentrations.
