Volvo takes over Danish truck dealership
The Danish Competition Council has approved the acquisition by Volvo Danmark A/S of Titan Lastvogne A/S, which among other things sells and repairs Volvo and Renault trucks.
Chairman of the Danish Competition Council Christian Schultz says:
We have approved the merger between Volvo Danmark and Titan Lastvogne, even though the merger clearly strengthens Volvo Danmark’s position as a dealer and repairer of trucks. The clearance is made mainly due to the fact that Titan Lastvogne stood to lose their authorization under Volvo Danmark, so Volvo Danmark would gain a stronger position in the market anyway. Because of this, the merger will in itself not limit competition significantly.
The Danish Competition Council has approved that Volvo Danmark acquires Titan Lastvogne, an authorized dealership and repairer of Volvo and Renault trucks on Zealand and Falster. Volvo Danmark had before the merger terminated their contract with Titan Lastvogne concerning Titan Lastvogne’s authorization as dealer and repairer of the two brands, so that Titan Lastvogne would cease to be authorized regardless of the merger.
The merger entails that Volvo Danmark will be the sole authorized dealer and repairer of the brands Volvo and Renault on Zealand and Falster. There will still be independent, unauthorized repairers, while there will also be authorized dealers and repairers of Volvo and Renault trucks on Fyn and in Jutland.
The Danish Competition and Consumer Authority assessed that Volvo Danmark’s total market shares will increase as a result of the merger. It has therefore played a significant part in the assessment, that Volvo Danmark would have terminated their contract with Titan Lastvogne as an authorized dealer.
Volvo Danmark’s market shares would thus have increased regardless of the merger.
The Danish Competition and Consumer Authority has specifically assessed whether the termination of Titan Lastvogne as an authorized dealership and repairer was part of the merger strategy. The parties have however documented – among other things through internal documents – that Titan Lastvogne would lose their authorization no matter if the merger would go through or not, and that the termination was therefore not specific to the merger.
It has been necessary to carry out thorough investigations, before the effect of the merger on competition could be assessed.
Titan Lastvogne has four dealerships respectively in Solrød, Ringsted, Holbæk and Nr. Alslev. Volvo Danmark is represented in almost all of Denmark through authorized dealerships and its’ own company, Volvo Truck Center.
For further information please contact head of communications in The Danish Competition and Consumer Authority, Hanne Arentoft, via tel. 4171 5098.