German competition authority bars
Remondis takeover of DSD

The decision to block the merger was announced Thursday.
11.07.2019 − 

Remondis will not be permitted to acquire the DSD Green Dot system, the Bundeskartellamt announced on Thursday morning. The decision of the German competition authority was expected. Kartellamt President Andreas Mundt said that were the merger to be allowed to proceed, “it is to be feared that DSD’s competitors would face higher costs, an increase in DSD’s market share and, ultimately, higher prices for the management of packaging waste.” In addition, the combined DSD/Remondis market share of 40 to 60 per cent of the waste glass market was a source of concern. “The undertakings submitted by the parties were not such as to eliminate competition concerns,” he said.

Remondis, as the largest waste management company in Germany, would have had an incentive following a merger to set its waste collection, sorting and treatment prices higher for DSD’s competitors than before the merger in order to put its competitors at a disadvantage compared to its in-house packaging waste management company, Mr Mundt explained. By raising rivals’ costs, he said that Remondis/DSD would have been able to gain substantial additional market share and drive competitors from the market. Ultimately a post-merger entity would be able to impose higher prices on the packaging compliance market, in the end leaving consumers to pay higher prices for packaging.

According to the Bundeskartellamt the undertakings submitted by Remondis and DSD were neither suitable nor sufficient to resolve the authority’s concerns about potential market restrictions. The companies now have one month to file an appeal of the decision at the Higher Regional Court (OLG) Düsseldorf.

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