The Georgian Competition and Consumer Agency (GCCA) has determined that the concentration implemented through the acquisition of 100% of LLC “Nomeri - Erti” by individual entrepreneur Paata Shubitidze, operating in the road construction sector, is compatible with the competitive environment. To assess the potential competitive impact of the transaction, the Agency conducted a market analysis, which showed that in 2024, a total of 608 economic agents were active nationwide in the road construction market. The market volume amounted to GEL 3,960,138,764.33 (excluding VAT). The Herfindahl-Hirschman Index (HHI) for the relevant market stood at 197.63 units prior to the transaction and increased slightly to 198 units after the concentration. The analysis confirmed that the market remains unconcentrated and that the change in the HHI is negligible. Accordingly, the GCCA concluded that the concentration will not have a significant impact on the market and is compatible with the existing competitive environment.
The Georgian Competition and Consumer Agency has approved the proposed concentration involving the acquisition of 100% of LLC “Fine Tree International” by JSC “Gepha.”. The competitive assessment of the planned transaction was implemented across four relevant markets, with particular consideration given to the level of imports. The Agency concluded that these markets are moderately concentrated. Although the number of economic agents at the import level is relatively limited, the markets remain competitive. Moreover, the change in the concentration index resulting from the transaction falls within the thresholds established by law. As a result, the Agency concluded that the proposed concentration will not have a substantial impact on the market and is compatible with the competitive environment.
The Georgian Competition and Consumer Agency has approved a concentration in the market for the extraction, purchase, and sale of manganese ore, resulting from the acquisition of 100% of the shares of LLC "MNCorp" by natural person Guram Talakvadze. According to the Agency’s market analysis, in 2023, over 30 undertakings were operating in the national export market of ferrosilicomanganese. The total market volume amounted to 149,755,401.50 kilograms. The corresponding Herfindahl-Hirschman Index (HHI) was calculated at 2,849.7, indicating a highly concentrated market. In the manganese ore extraction market, five undertakings were active nationwide in 2023. The total market volume reached 967,242 tons, with the Herfindahl-Hirschman Index (HHI) standing at 9,871.5, also signifying a highly concentrated market.
The Agency has approved the concentration resulting from the acquisition of a 40% ownership share in LLC "Agro Motors" (I/N 401990093) by natural person Iuri Korotchenko, which operates in the wholesale trade sector of agricultural machinery, equipment, and related assets. Market analysis indicated that in 2023, approximately 120 undertakings were active nationwide in the wholesale trade of agricultural machinery and equipment. The total market volume amounted to GEL 200 698 294.23. The Herfindahl-Hirschman Index (HHI) for market concentration was calculated at 651.82, reflecting a low level of market concentration. Furthermore, since other undertakings controlled by Iuri Korotchenko were not engaged in the wholesale trade of agricultural machinery, equipment, and related assets prior to this transaction, the HHI index will remain unchanged as a result of this concentration.
The Georgian Competition and Consumer Agency has approved a concentration resulting from the acquisition of 100% of the shares of LLC “Buka” (I/N 401989381) by individual entrepreneur Gia Gorgoshadze. LLC “Buka” primarily operates in the real estate leasing sector, while the undertakings controlled by Gorgoshadze operate in the sectors of household and construction materials trade, education, mineral exploration, and agriculture. Based on the Agency’s market analysis, in 2023, approximately 4,240 undertakings were active in Georgia’s real estate leasing and rental market. The total market volume for the period reached GEL 2,852,674,924. The corresponding Herfindahl-Hirschman Index (HHI) was calculated at 48.70, indicating a low level of market concentration. The market features a broad spectrum of participants with relatively balanced market shares, and the target company holds a modest share of the relevant market. Moreover, as the undertakings controlled by Mr. Gorgoshadze were not active in the real estate leasing and rental market prior to the transaction, the implementation of the concentration will have no impact on the market’s concentration level (HHI).
The Georgian Competition and Consumer Agency has granted approval for a concentration in the main water pipeline construction sector, implemented through the acquisition of 100% of the shares of LLC "Comfortmsheni" (I/N 405346399) by natural person Davit Begoidze. Following a comprehensive market analysis, it was established that, as of 2023, approximately 180 undertakings were engaged in economic activity within the national market for main water pipeline construction. The total market volume amounted to GEL 460,885,077.42. The Herfindahl-Hirschman Index (HHI) for this market was calculated at 345.75, indicating a low level of market concentration.
Moreover, as the undertaking under the control of Davit Begoidze—LLC "Kselmsheni"—was not active in this market prior to the transaction, the concentration will not result in any change to the HHI. Consequently, the Agency concluded that the transaction will not have a significant adverse effect on the competitive landscape.
The Agency (GCCA) has approved the concentration implemented by “Domus Development” LLC (I/N 405547047) through its acquisition of 50% of the shares of “Domus Seaside” LLC (I/N 245618498) . A market analysis conducted by the Agency determined that in 2023, the total value of the residential and non-residential construction market in Georgia approximately 300 undertakings operating in the sector. Prior to the concentration, the Herfindahl-Hirschman Index (HHI) stood at 588.7, indicating a low-concentration market. Following the transaction, the HHI increased by just 2.23 points, reaching 590.9, which remains within the low-concentration range. Thus, the analysis confirmed that the market remains unconcentrated, and the increase in the Herfindahl-Hirschman Index resulting from the concentration is insignificant.
The Georgian Competition and Consumer Agency (GCCA) has approved the concentration implemented by “Geotech Distribution” LLC (I/N 202453665) through its acquisition of 100% of the shares of “Cosmos” LLC (I/N 405490703) . Following an analysis of the information provided, the Agency determined that “Geotech Distribution” LLC and “Cosmos” LLC operated in different, unrelated markets. Considering their market positions, the Agency concluded that the concentration would not impact the relevant markets and is compatible with the competitive environment.
The Georgian Competition and Consumer Agency (GCCA) has approved the acquisition of a 67% share in ‘Euroline” LLC by “BMS” LLC, resulting in a concentration in the fast-moving consumer goods (FMCG) market at both the retail and distribution levels.
Based on the data reviewed by the Agency, in 2024, more than 7 000 undertakings were operating in the retail segment of the FMCG market nationwide. The Herfindahl-Hirschman Index (HHI), a measure of market concentration, stands at 690.98, indicating a low level of concentration. At the distribution level, 85 companies were actively engaged in economic activities, with an HHI of 457, also signifying a low-concentration market. The proposed transaction is not expected to significantly impact competition and is deemed compatible with the competitive environment.
