Rheinkalk abandons merger project

Rheinkalk GmbH, Germany's largest supplier of limestone and quicklime, has abandoned its plans to acquire the limestone quarry at Warstein because of serious competition concerns of the Bundeskartellamt.

Andreas Mundt, President of the Bundeskartellamt: "Rheinkalk already has a share of over 60 % of the west regional market for quicklime. Rheinkalk has secured its position in particular through extensive rights to quarry limestone, the most essential raw material for making quicklime. According to our knowledge so far, Rheinkalk would have further expanded its dominant position by acquiring the Warstein limestone quarry".

The target company operates a limestone quarry in close proximity to Calcis, one of Rheinkalk's few competitors on the west regional market for quicklime. For years Calcis has procured its limestone almost entirely from the Warstein quarry. Post merger this competitor would have only been able to cover his raw material requirements under considerably more difficult conditions and at a higher cost. According to the Bundeskartellamt's preliminary assessment, Calcis' position on the quicklime market would have been considerably weakened and Rheinkalk’s paramount market position secured.

Rheinkalk also has a large share on the upstream market for limestome in the west market, with a clear lead over its medium-sized competitors. According to the authority's preliminary assessment, Rheinkalk would have acquired further market shares with the acquisition of the Warstein quarry and been able to expand its paramount position.