Poland’s competition authority, UOKiK, has raised objections to ArcelorMittal Poland (AMP)’s planned joint venture with rail welder and steel trader Moris.
After carrying out a detailed study of and collecting data from participants in the rail market, UOKiK found that the JV could lead to a significant reduction in competition in the domestic market for welded rail sales to end users. The new entity would also be the only supplier of welded rail in Poland, which could lead to increased prices for the product.
“The participants of the concentration are each other’s only significant competitors from the perspective of the end buyer of the rails. Our analysis shows the establishment of a joint venture may eliminate competitive pressure and, with high probability, result in an increase in prices for end users. The concentration may also limit the possibility of new suppliers entering the market,” UOKiK president Tomasz Chrostny says in a note seen by Kallanish.
The objections are not binding on UOKiK’s final decision. AMP and Moris have 14 days from 26 October to respond.
Adam Smith Poland