Competition Council rejects Al-Fakharia Company's acquisition of Aquapipe Company

Riyadh 24 Safar 1437 AH, December 6, 2015, SPA — The Competition Council issued a decision rejecting the application submitted by Saudi Company for Producing Clay Pipes (Al-Fakharia) to acquire Arab Company Limited for Producing Water pipes (Aquapipe), pointing out that this rejection is the second decision issued by the Council on the economic concentration applications.
The Council said in a press statement that the Secretariat of the Council has prepared an economic study of the process of economic concentration and addressed the relevant authorities, both at the government level or the private sector, in order to identify the aspects of the size of the markets in the pipe sector, market share of the main competitors, the reality of competition and the impact of the merging company.
The Council also said that the decision was based on the reality of competition in the piping sector and reliance on Index (HHI), which depends on the market shares of the producing companies from domestic production, noting that according to the data analysis of this concentration, the acquisition is in the case of high concentration approaching full monopoly.
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12:08 LOCAL TIME 09:08 GMT