Bundeskartellamt clears acquisition by the Remondis group of four Sita waste management sites in Baden-Württemberg

The Bundeskartellamt has cleared the acquisition by Remondis of four waste management sites belonging to the Sita group at Radolfzell, Talheim, Trossingen and Pfullingen. The merger project affects various markets for the management of domestic and industrial waste. Remondis originally intended to acquire seven sites from Sita. However, in the Bundeskartellamt's view this would have considerably restricted competition in the market for the collection and transport of residual and biological waste in southern Baden-Württemberg.

Andreas Mundt, President of the Bundeskartellamt: "Remondis is the market leader in the German waste management sector. In the case at hand our particular concerns were about the region surrounding Breisgau-Hochschwarzwald and the neighbouring districts. Following our intervention Remondis decided not to acquire the sites in these districts and another one in the Zollernalb district so we were able to clear the merger project."

Apart from Remondis' high market shares in this area, the decisive factor in the critical assessment of Remondis' original plans was that with the acquisition the company would further expand its already superior network of locations in the south-west region of the market. There was also no substantial competitive tendering in the region. In May 2014 the Bundeskartellamt therefore informed the merging parties in a preliminary assessment that it intended to prohibit the acquisition of seven sites. The company then withdrew its notification.

As a reaction to the Bundeskartellamt's concerns Remondis has now decided not to acquire three sites and forgo the respective waste management contracts in the Breisgau-Hochschwarzwald and Zollernalb districts. With the abandonment of Remondis' plans to acquire these sites a further consolidation of the company's position in these regions could be prevented and any significant impediment to effective competition avoided.