The Georgian Competition and Consumer Agency (GCCA) has declared compatible with the competitive environment the concentration implemented through the acquisition of a 100% stake in GBC LLC by Gepha JSC.
Having regard to the specific nature of the activities of the undertakings concerned, the relevant market was defined as the market for baby and mother care products, without further sub-categorisation.
On the basis of the relevant market analysis, it was established that in 2025 the total volume of the market for baby and mother care products at import level amounted to GEL 780 624 503, the Herfindahl-Hirschman Index (HHI) stood at 374.31, and the number of undertakings active on the relevant market was 885. Following implementation of the concentration, the HHI is projected to increase by 4.5 units, reaching 378.80.
The analysis confirmed that the market is low-concentration and that the HHI falls significantly below the maximum threshold applicable to low-concentration markets (1,250). The target undertaking holds a low market share and, accordingly, the incremental increase in the HHI resulting from the transaction is negligible.
In 2026, the GCCA has approved 10 concentrations.
In accordance with Georgian legislation, concentration is subject to notification to the Agency if the aggregate (total) joint income of its participants on the territory of Georgia, exceeds 20 million GEL and the joint income of at least two persons participating in the concentration exceeds 5 million GEL for the previous financial year. In case of bypassing the Competition Agency subject to the mandatory notification, before the Agency reviews the notification or despite the negative conclusion, the person with the obligation to submit the notification shall be fined.
