Saferoad Baltic, the Lithuanian subsidiary of Norwegian road infrastructure company Saferoad Holding, may acquire the Lithuanian company Gatas, which is engaged in the same business, the Competition Council announced on Wednesday.
According to her, the permit was granted after Saferoad Baltic committed to preserving effective competition in the markets for the sale of road barrier systems and their installation and maintenance.
"In the absence of Saferoad Baltic's commitments, the transaction would create or strengthen a dominant position or significantly restrict competition in the markets for the sale of road barrier systems and the installation and maintenance of these systems," the council states.
One of the shareholders of "Gatos" Donatas Dudonis told BNS that the value of the transaction is not being announced, and it is expected to be completed in June.
"Gatas will soon officially join the international Saferoad group, operating in 13 countries, whose experience, leadership and innovations will further strengthen the Lithuanian road safety solutions sector. This acquisition is also a signal that the Lithuanian market is promising and attractive," D. Dudonis said in a comment to BNS.
According to him, the former owners of "Gatos" - D. Dudonis and Kęstutis Mendelis - intend to further expand their company "Viadukas", which is involved in the construction and maintenance of viaducts, bridges, wind farms and other engineering solutions - its team is currently being strengthened.
The Council, after conducting a preliminary assessment in April, announced that it had determined that the transaction could significantly restrict competition, as the merged entity could limit the access of other participants in this market to road barrier systems, and could also increase the prices of such services.
Therefore, Saferoad Baltic then committed to selling road barriers and their systems to Gatas and any of its competitors on equal terms. Saferoad Baltic and Gatas also committed not to exchange confidential information.
According to the Center of Registers, D. Dudonis and K. Mendelis each own 50 percent of the shares of "Gatos", and they also own the shares of "Viadukas" in equal shares.
"Gatas" is engaged in the installation and maintenance of road markings, electric car charging stations, electrical installation and intelligent transport systems.
In 2023, the company "Gatas", which tripled its net profit to 2,5 million euros, indicated in its activity report that there are many companies with similar activities in Lithuania, therefore there is strong competition in the market.
In Lithuania, Saferoad Baltic and its related companies sell road barrier systems, steel structures, work area protection and road marking products, build geotechnical and water management facilities, manage a paper production business, develop software, manufacture car security equipment and more.
According to the council, companies related to the company in the European Economic Area and other regions manage alternative investment funds, develop software, and operate in the automotive, food, construction, and clothing industries.
According to the Center of Registers, Saferoad Holding is the sole shareholder of Saferoad Baltic.
The Norwegian company, founded in 2007, presents itself as a leader in the production of traffic safety systems in Europe, operating in 13 countries.
