Competition authority moves to block
Remondis' DSD takeover

Federal Cartel Office plans to block Remondis DSD takeover
15.04.2019 − 

The German Federal Cartel Office is minded to prohibit Remondis' planned takeover of the Green Dot company DSD. The parties to the deal were informed today and will now have two weeks in which to respond to the draft decision, according to a statement from the competition authority released on Monday.

Adreas Mundt, president of the Federal Cartel Office, said, "According to the preliminary evaluation of the case, a takeover of DSD by Remondis would lead to a restriction of competition among Germany's packaging waste recovery systems." There were concerns that reduced competition would result in higher costs for DSD's competitors, a substantial increase in DSD's market share and higher prices on the market for packaging recovery.

Competition concerns

According to the Bundeskartellamt's preliminary evaluation, there are three sources of concern arising from a takeover of DSD by Remondis. A merger would change the business calculations made by the parties. There would be incentives for Remondis to raise its prices for services like waste collection, sorting and processing which it provides to DSD's competitors. The preliminary evaluation indicated that as a result of a merger DSD would significantly expand its market share, crowding out its competitors, and this would ultimately lead to higher prices on the market for packaging waste compliance.

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