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.
The Georgian Competition and Consumer Agency (GCCA) has approved the acquisition of a 90% share in LLC “Evercraft International” (I/N 400364654) by LLC “G.D. Alco” (I/N 205047091), resulting in a concentration in the alcoholic beverages sales sector. According to the data reviewed by the Agency, in 2024, the high-alcohol beverages market comprised 215 companies, with a total market volume of 20 148 767.5 liters. The Herfindahl-Hirschman Index (HHI) for market concentration was 1275.48, indicating a moderately concentrated market that slightly exceeds the threshold (1,250) for low concentration. However, Evercraft International holds a small market share, resulting in a minimal change in market concentration (ΔHHI = 1.04). In the distribution services market, the total volume in 2024 amounted to 7 736 172 745.45 GEL, with an HHI of 547.2, signifying a low-concentration market. Given the small market share of the entity involved in the transaction, the proposed concentration is not expected to significantly impact competition and is deemed compatible with the competitive environment.
The Georgian Competition and Consumer Agency (GCCA) has approved the acquisition of 100% of the shares of "Alcoriteil Group" LLC by "Daily" LLC. Based on the analysis of available data, in 2023, a total of 240 companies were operating in the alcoholic beverage production and import market across the country. The Herfindahl-Hirschman Index (HHI) for market concentration was 952 units. Following the proposed concentration, the HHI is expected to increase to 957.2 units, reflecting a minimal change (ΔHHI = 5.2). According to the Agency's assessment, the market remains low-concentrated, and the proposed transaction will not result in a significant change in market structure. Therefore, the concentration is deemed compatible with the competitive environment.
The Georgian Competition and Consumer Agency (GCCA) has approved the acquisition of 100% of the shares in Samtoeli LLC, Magharoeli LLC, MN Factor LLC, GM-MS LLC, GM-Technikaservice LLC, GM-Construction LLC, and Chiatura Water Company LLC by Chiatura Management Company LLC. Based on the Agency’s analysis, the target companies were already part of the same group prior to the transaction. No new reorganization occurred as a result of the concentration that could pose risks of coordinated or uncoordinated effects. Accordingly, the Agency has determined that the transaction does not have a significant impact on the relevant market and is compatible with the competitive environment.
The Agency has approved the concentration involving Georgian Cement LLC’s acquisition of the assets of Georgian Concrete Company (GBC) LLC, subject to the implementation of independent behavioral measures. An analysis of market data revealed that in 2023, 52 undertakings were actively engaged in concrete production nationwide. At present, the Herfindahl-Hirschman Index (HHI) for market concentration stands at 1388.39. Following the concentration, the HHI will increase to 1754.16, reflecting a change of ΔHHI = 365.77. While the market remains moderately concentrated, the degree of change surpasses the acceptable threshold. After evaluating the proposed modifications from the parties and incorporating necessary adjustments, the Agency determined that the implementation of independent behavioral measures would sufficiently mitigate competitive concerns. Consequently, the concentration was deemed compatible with the competitive environment, conditional upon adherence to these measures.
