German Antitrust Authority Clears Strabag’s Stumpp Takeover with Required Plant Sale

According to a statement, the Bundeskartellamt cleared the deal on the condition that Stumpp sells its asphalt mixing plant in Zimmern to an independent third party before the transaction can be completed. The authority said this requirement is intended to address competition concerns tied to the production and sale of roller-compacted asphalt in the region between Stuttgart and Lake Constance.

Andreas Mundt, President of the Bundeskartellamt, explained the reasoning behind the decision. “Strabag is one of the leading road construction companies in Germany and operates a dense network of asphalt mixing plants producing roller-compacted asphalt. The complete takeover of the Stumpp group, including its two mixing plants, would strengthen Strabag’s market position in the area between Stuttgart and Lake Constance to such an extent that it would account for nearly half of the roller-compacted asphalt sold in this region. The sale of the Zimmern plant ensures that sufficient alternatives remain available in the region.”

Roller-compacted asphalt is a central material used in road construction projects. It is manufactured in dedicated mixing plants and, because it must typically be laid shortly after production, transportation distances are limited for both technical and economic reasons. As a result, the relevant markets for assessing competition are regional in scope.

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Stumpp is considered one of the leading road construction companies in the Stuttgart–Lake Constance corridor. The company operates asphalt mixing plants in Zimmern and Balingen and also holds interests in several quarries.

Strabag, headquartered in Cologne, is among Europe’s largest construction groups. It already operates multiple asphalt mixing plants and has quarry interests in the affected region. However, per a statement from the authority, Strabag is not currently regarded as a leading provider of road construction services within Stumpp’s specific area of activity.

The Bundeskartellamt found that the proposed merger would have significantly expanded Strabag’s presence in the regional market for roller-compacted asphalt. According to a statement, the combined entity’s market share would have exceeded 40 percent, a level that can trigger a presumption of market dominance under German competition law. The authority also noted that four of the companies’ mixing plants in the relevant area are strategically positioned along key transport routes, reinforcing their combined market strength.

In addition to the asphalt market, the merger would have bolstered Strabag’s position in the upstream market for crushed natural stone and in the downstream regional market for road construction services. Competitors in the area are largely medium-sized firms with substantially smaller financial resources, each holding market shares below 15 percent.

To address these concerns, the companies proposed selling the Zimmern mixing plant to an independent buyer prior to closing the transaction. The Bundeskartellamt conducted a market test and consulted industry participants to evaluate the proposal. The authority concluded that divesting the plant is capable of preventing Strabag from attaining a dominant position in the regional asphalt market. Without the Zimmern facility, Strabag’s share would remain below the 40 percent threshold associated with presumed dominance.

According to a statement, the competition concerns can be fully resolved if a suitable purchaser is found who can ensure the long-term operation of the Zimmern plant and meet other specified conditions.

Source: Bundeskartellamt