Competition authority to look at Lemminkäinen deal
By Sandy Guthrie15 August 2012
The proposed purchase of Lemminkäinen Rakennustuotteet - Finnish contractor Lemminkäinen's concrete business - by Rudus is to be investigated by the Finnish Competition Authority (FCA).
Lemminkäinen and Rudus, also a Finnish company and dealing with concrete and stone building materials and products, agreed a €55 million share purchase agreement for all outstanding shares in Lemminkäinen Rakennustuotteet in July.
The FCA said it would investigate whether the deal might "significantly impede effective competition in the Finnish markets or a substantial part thereof", in particular as a result of the creation or strengthening of a dominant position.
The FCA may approve the deal as such, attach conditions on its implementation or propose that the Market Court prohibit the deal. The proceedings may last a maximum of three months under the Competition Act.
The company concerned is part of Lemminkäinen's Infrastructure Construction business sector and operates three business areas - precast concrete elements (Elemento, with five plants), landscaping concrete products (Formento, with three plants) and ready-mixed concrete (16 plants). Lemminkäinen said that net sales in 2011 were around €84 million and Lemminkäinen Rakennustuotteet has some 400 employees in Finland.
Lemminkäinen recorded an operating loss for the first half of the year, although the company said its earnings in the period improved on the previous year when non-recurring items were taken out.