The European Commission (EC) has approved the acquisition of Danish building material wholesaler and retailer Danske TrÃ¦last by UK-based investment group CVC.
According to the EC, the acquisition does not raise any competition concerns in Europe despite CVC being active in the sector through some of its portfolio companies.
On 3 April 2003, the CVC Group made a public bid to acquire sole control of Danske TrÃ¦last, a company active in the distribution of building materials to professional and non-professional customers in Denmark, Sweden, Finland and Norway.
CVC manages investments on behalf of investment funds and as such it already has a controlling interest in companies active in the manufacture, wholesale and retail sale of cement, pipes, lighting products, insulation and gardening products.
Danske TrÃ¦last also sells these products in its different outlets. But the combined market shares of the parties do not give rise to competition concerns as they are either active in different countries or their activities present only minor overlaps.
The Commission also investigated the vertical relationship created by the deal as Danske TrÃ¦last sells products supplied by the other CVC portfolio companies or by their competitors, but these relations do not give rise to foreclosure effects or other concerns.
On markets where the parties combined market share exceed 25% (pipes and garden watering equipment) the markets are characterised by a large variety of other distribution channels and the transaction will have no major impact on competition.