Wienerberger – Brikston transaction could lead to higher prices for bricks

The Competition Council has launched an investigation regarding the transaction by which Wienerberger Sisteme de Caramizi SRL is taking over Brikston Construction Solutions SA, to assess its effects on the market for the production and sale of bricks and ceramic blocks in Romania, a press release informs.

Romania’s anti-trust body has concluded that this transaction is likely to create significant obstacles to effective competition by creating a dominant position on the market, which could lead to price hikes.

”Given that the transaction has serious doubts about the compatibility with a normal competitive environment and these could not be removed by the commitments proposed by Wienerberger Sisteme de Cărămizi SRL, the Competition Council decided to open an investigation,” the release reads.

According to the law, the competition authority will issue a decision within a maximum of 5 months by which the transaction will be authorized or will be banned or authorized under conditions.

The transaction by which Wienerberger Sisteme de Cărămizi SRL takes over Brikston Construction Solutions SA. is an economic concentration that exceeds the value thresholds provided by the law and is subject to the control of the Competition Council.

Wienerberger Sisteme de Caramizi SRL is part of the Wienerberger Group, which is present on the brickwork materials market in Romania since 1998. Wienerberger Brick Systems SRL has in Romania 4 units of ceramic blocks. In addition, in Romania, the Wienerberger Group produces and markets concrete pavements and sells plastic and ceramic pipes, as well as ceramic roof tiles and accessories (produced in the Wienerberger Group’s production facilities in other countries).

The main activity of Brikston Construction Solutions SA is the production and marketing of bricks and ceramic blocks for structural and non-structural brickworks as well as for partitions and, to a lesser extent, for special applications and accessories (ventilation ducts, grates, decorative materials garden, glass shelves for wine cellars and bricks for fencing).