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Georgian National Competition Agency Approved Two Planned Concentrations

კონკურენციის სააგენტო

The Georgian National Competition Agency has approved two planned concentrations. In one case, the issue concerns the retail market of auto fuel (gasoline, diesel), and in the other case, the construction-development sector.

After reviewing the materials submitted, the Agency found that "Repsol" LLC operates in the auto fuel trade market, while "IberCompany" LLC operates in the operation and leasing of gas stations market. The national retail market volume in 2022 was 1,311,160 thousand liters, with 487 companies operating in the retail market and 1,250 gas stations. The market concentration index of the Herfindahl-Hirschman index HHI was 949.7, indicating a low concentration market. Therefore, the Competition Agency approved the concentration of "Repsol" LLC gaining control over 4 gas stations owned by "IberCompany" LLC.

Regarding the second concentration, "Mnkorpi" LLC operates in the sale of ferroalloys, while "Lexwell" LLC operates in the construction and development sector. The Agency determined, that the turnover volume in the residential and non-residential building construction market in 2022 was 8,084,435,501 GEL, with a market concentration index of Herfindahl-Hirschman index HHI of 63.96, indicating a low-concentration market. Since "Mnkorpi" LLC did not operate in the relevant market of construction of residential and non-residential buildings before the merger, there will be no change in the concentration - HHI index after the merger.

According to the decision of the Georgian National Competition Agency, the mentioned concentrations do not essentially limit effective competition and are compatible with the competitive environment.

The Agency has verified the concentration of 22,459 companies registered in Georgia in the first 9 months of 2023. As of today, the Agency has approved 8 concentrations.