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.
The Agency has approved the concentration involving Georgian Cement LLC’s acquisition of the assets of Georgian Cement Company LLC, subject to the implementation of independent behavioral measures. An analysis of market conditions in 2023 revealed that 52 undertakings were active in the country’s cement production market. The Herfindahl-Hirschman Index (HHI) for market concentration currently stands at 2932.2. Following the concentration, the HHI is projected to rise to 3671.43, marking an increase of ΔHHI = 739.23. This indicates a highly concentrated market, with the level of change exceeding the permissible 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.
The Agency has approved a concentration in the gray cement production market. The case pertains to the acquisition of a 50% shares in "Max Import" (I/N 405164174) by Levan Varsimashvili (P/N 22001005466). In 2023, 52 companies were actively engaged in the gray cement production market nationwide. The market is currently highly concentrated, with a Herfindahl-Hirschman Index (HHI) of 2,876.44. Following the concentration, the HHI will increase by 55.76 points, reaching 2,932.2. Based on the Agency's assessment, the concentration does not significantly impact the competitive environment and is deemed compatible with the current market dynamics.
The Agency has approved a concentration in the gray cement production market. The case pertains to the acquisition of a 50% shares in "Max Import" (I/N 405164174) by Levan Varsimashvili (P/N 01011021953). In 2023, 52 companies were actively engaged in the gray cement production market nationwide. The market is currently highly concentrated, with a Herfindahl-Hirschman Index (HHI) of 2,876.44. Following the concentration, the HHI will increase by 55.76 points, reaching 2,932.2. Based on the Agency's assessment, the concentration does not significantly impact the competitive environment and is deemed compatible with the current market dynamics.
The Agency has approved the concentration of “Georgian Beer and Beverages Holding” LLC (I/N 405740881), through the acquisition of 100% of shares in “Global Beer Georgia” LLC (I/N 406135640), “Genuine Brewing Company” LLC (I/N 405070694), “Global Coffee Georgia“ LLC (I/N 405182840), and “Georgia Distribution and Logistics” LLC (I/N 205116088). Based on the materials reviewed, the following market data for 2023 was determined - Soft Drinks Market: 215 companies operated in the market, with a total volume of 464,757,669 liters. The Herfindahl-Hirschman Index (HHI) was 2,590, indicating a highly concentrated market, though this concentration is not primarily driven by the parties involved in the transaction. Beer Market: 75 companies operated in the market, with a total volume of 131,709,495 liters and an HHI of 2,273. Distribution Services Market: The market volume was 7,431,011,772 GEL, with an HHI of 400, indicating a low-concentration market, supported by the presence of numerous competitors. Coffee Import Market: 200 undertakings were active, with a total market volume of 6,625,788 kilograms and an HHI of 1,721, indicating moderate concentration. According to the Agency’s assessment, the implemented concentration will not significantly affect the competitive environment, and the markets involved remain balanced.
The Georgian Competition and Consumer Agency has approved concentrations in the FMCG market through the acquisition of 100% of the shares of "Georgian Beer Company" Ltd (I/N 404900737) by “Daily” Ltd (I/N 406088638). The GCCA's analysis revealed that, in 2023, there were approximately 12,000 companies engaged in retail FMCG activities across the country. Before this acquisition, the largest market participant held a share of no more than 13%.The current market concentration index (HHI) stands at 461, which will increase to 581 following the implementation of the concentration-Index change ΔHHI=120. According to the agency's assessment, the market is considered low-concentrated, and the change in the concentration index as a result of this acquisition is not significant.
