Proposed acquisition of Euromaster Danmark by NDI Group is abandoned
NDI Group has withdrawn its notification of a proposed acquisition of Euromaster Denmark by NDI Group. Therefore, the Danish Competition and Consumer Authority (DCCA) discontinues its work on the case. The DCCA has had concerns that the merger could harm competition.
Christian Schultz, Chairman of the Competition Council, said:
As Competition Authority, we have had concerns about the merger, as our investigations have shown that it could harm competition. The parties have not presented solutions that could remove these concerns. We have now discontinued our work on the case because NDI Group has withdrawn its merger notification.
In November 2022, NDI Group notified the acquisition of Euromaster Danmark by NDI Group to the DCCA. The proposed merger has been continuously discussed in the Danish Competition Council (DCC). On 9 August, NDI Group has withdrawn the notification. Therefore, the DCCA discontinued its work on the case without issuing a decision.
According to the Danish Competition Act, the Competition Authorities must approve a merger if it does not significantly impede competition. If, on the other hand, the merger significantly impedes competition, the merger must be prohibited.
The DCCA has carried out extensive market research, where customers and competitors have been consulted. A number of economic analyses have also been carried out. On this basis, the DCCA has expressed competitive concerns about the merger to the parties.
NDI Group and Euromaster Danmark are active in the retail sale of replacement tires for heavy vehicles (trucks and buses, construction machinery, agricultural vehicles) as well as for passenger cars and vans. Both companies also offer tire service, and both companies are among the largest players on the markets. The DCCA's investigations have shown that customers would lose a significant alternative if the merger were approved without intervention.
When the DCCA receives a merger notification, there are statutory deadlines for when a decision must be made at the latest. In this case, the deadlines have been suspended for a longer period. This is partly due to an appeal before the Competition Appeal Tribunal (CAT) regarding a deadline, and partly because the DCCA has been awaiting information from the parties.
For further details
Contact Hanne Arentoft, Head of Communication at the Danish Competition and Consumer Authority, phone 41 71 50 98.