The Georgian Competition and Consumer Agency (GCCA) has approved a concentration in the road construction sector, involving the acquisition of a 100% share in LLC "Nomeri - Erti" by individual entrepreneur Paata Shubitidze, deeming it compatible with a competitive market environment.
To assess the competitive impact of the concentration, the GCCA conducted an analysis, which revealed that in 2024, 608 undertakings were active in the road construction market across Georgia, with a market volume of GEL 3,960,138,764.33 (excluding VAT). The Herfindahl-Hirschman Index (HHI) for market concentration was 197.63 units before the concentration and increased marginally to 198 units post-concentration. The analysis confirmed that the market remains lowly concentrated, and the change in the HHI resulting from the concentration is negligible. Consequently, the GCCA determined that the concentration does not significantly impact the market and is compatible with a competitive market environment.
FYI: 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 Georgian Competition and Consumer Agency has approved 11 concentrations.
