The Bundeskartellamt, a competition authority tasked with protecting competition in Germany, has cleared the acquisition by Remondis of four Sita waste management sites in Germany. The four sites are in Radolfzell, Talheim, Trossingen and Pfullingen, all in the Baden-Württemberg state of Germany.

Initially, Remondis, a Germany-based recycling and waste management firm, had sought to acquire seven Sita locations. However, in its review the Bundeskartellamt decided that Remondis acquiring seven Sita sites in the one region would have considerably restricted competition for collection and transportation of material in Baden- Württemberg.

“Remondis is the market leader in the German waste management sector,” says Andreas Mundt, president of the Bundeskartellamt. “In the case at hand our particular concerns were about the region surrounding Breisgau-Hochschwarzwald and the neighboring districts. Following our intervention Remondis decided not to acquire the sites in these districts and another one in the Zollernalb district so we were able to clear the merger project.”

Along with Remondis’ heavy concentration in the state, the competition authority also noted that with the acquisition the company would further expand its already superior network of locations in the southwest region of the market. There was also no substantial competitive tendering in the region.

In May 2014 the Bundeskartellamt informed the merging parties in a preliminary assessment that it intended to prohibit the acquisition of all seven sites. Remondis then withdrew its notification and applied to acquire the four locations.