DSD and Remondis submit undertakings to competition authority

Remondis and DSD are prepared to make further
concessions to the German competition authority
27.06.2019 − 

The anti-trust review of Remondis’ proposed takeover of the German Green Dot company Duales System Deutschland will go into extra time. In recent days there had been indications that the German anti-trust officials were preparing to block the acquisition. But now DSD and Remondis have offered a list of undertakings intended to allay the Bundeskartellamt’s concerns regarding the market impact of the merger. The submission extends the deadline for a final decision by the competition authority by four weeks, the companies said.

In a statement, waste group Remondis expressed confidence that the wide-ranging undertakings would now allow for a more objective evaluation of the deal which would be satisfactory to all market participants. Both concerns cited a report drafted by competition policy specialists from the Berlin economics consultancy E.CA Economics. While the central conclusion of the report was that the merger would not lead to a restriction of competition, Remondis had nevertheless agreed to take number of remedial measures in order to “advance the process constructively”.

Remondis managing director Herwart Wilms explains the step: "With the extensive undertakings now submitted to the Kartellamt, the ongoing proceedings will receive new momentum. Remondis is ready and willing to respond to the concerns of the market and the antitrust authorities and to relinquish market shares in certain areas."

Competition authority remains unconvinced

A preliminary assessment of the remedies proposed by Remondis and DSD has not altered the Bundeskartellamt’s position with respect to the merger. This morning, the competent department within the competition authority informed the businesses and trade organisations admitted as intervening parties that the formal offer from Remondis and DSD had been received on Tuesday, extending the deadline for the review to 29 July.

"The Decision Division has dealt with the undertakings offered by the parties to the merger and – as with the possible undertakings previously discussed with the merger parties – does not consider the formal undertakings offer submitted on 25 June 2019 to be appropriate to avert a prohibition," wrote the authority. Nevertheless, the Bundeskartellamt does not intend to take a formal decision on the matter prior to 3 July.

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