Remondis can acquire Cortek Group

In second phase proceedings the Bundeskartellamt has cleared the acquisition of the Cortek group by REMONDIS GmbH & Co. KG, Kloster Lehnin. The Cortek group includes the following companies: Cortek Gesellschaft für Recycling und Entsorgungsleistungen mbH, Weißenfels, UMTECH Entsorgungsgesellschaft mbH, Zeitz, and Zentrum für Wertstoffverarbeitung Mitteldeutschland GmbH, Schkopau. The companies acquired mainly provide services for the collection of commercial waste in southern Saxony-Anhalt and in the bordering regions of Thuringia and Saxony.

The acquisition widens Remondis' network of locations in the southern part of eastern Germany. Remondis is the largest waste management company in Germany. In addition, it is the market leader in the collection of household waste in the relevant region. With its acquisition of the Cortek group, Remondis will also become market leader in the collection of commercial waste there.

Andreas Mundt, President of the Bundeskartellamt: "We were able to clear the merger in spite of Remondis's strong market position. The competitors active in the region also have well-equipped site networks, participate in tenders for the collection of household and packaging waste and so exert competitive pressure on Remondis. However, in many municipalities in the region the collection of household waste is carried out by municipal undertakings without a tender procedure. More competition could be created if more municipalities carried out tender procedures."

The Bundeskartellamt has examined to what extent the acquisition of the Cortek group can strengthen Remondis' bidding position in tenders issued by municipalities and dual disposal systems for household waste collection, although the Cortek group has not yet received any orders for such services in this waste management segment. Such cross-market effects will also be explored in a sector inquiry currently being prepared by the Bundeskartellamt which will deal, among other things, with the causes of and preconditions for intensity of competition in tenders for waste management services.