Tarmac Acquisition by Eurovia

1. The nature of the case;

1.1. Presentation of the companies

Eurovia operates in the production of construction materials and the roads maintenance. The company belongs to the Vinci group, which is present on the following markets: construction engineering, motorway concession and other activities linked with the energy field (electrical, thermal and mechanical). In 2008, the company turnover was around 33.5 billion euros in the whole Europe, and less than 50 million for France only.

In this case, Eurovia aims to take over 4 subsidiaries of the Tarmac group. These subsidiaries are in charge respectively of France, Germany, Poland and Czech Republic. This case will only deal with the French part. Tarmac produces and sells aggregates, necessary to create construction materials. In France, the group owns 44 quarries. The part took over by Eurovia represent a little less than 50 million euro, in terms of turnover.

This merge should concern mainly the European authorities, but after considerations, the French authorities have been designated to judge this case. According to the European Commission, this case has to be analyzed at smaller scales. It logically falls within the competence of the “Autorité de la concurrence” which is more able to judge about local issues in France.

1.2. Tools used to set the borders of the analyzed market

There are two dimensions to take into account to define the market. The first one based on the nature of the goods and the second one on the geographical area.

1.2.1. Nature of the goods

- Aggregates

Aggregates are used mostly to create construction materials. In France, the major part of them comes from quarries or other natural extraction sites. It exists different kind of aggregate. There is one kind preferred to produce concrete and another kind better to produce asphalt. These preferences come from the mineral property of the different kinds.

But it has been proved that the clients do not...