The Turkish Competition Authority’s Arsem / Kars Çimento Decision

A. Introduction

The Turkish Competition Authority ("TCA") recently published its reasoned decision concerning the acquisition of Kars Çimento Sanayi ve Ticaret AŞ ("Kars Çimento") by Arsem Madencilik Enerji Sanayi ve Ticaret AŞ ("Arsem"). The decision followed a Phase II review and resulted in conditional clearance subject to package of behavioural commitments.

The decision is noteworthy because the TCA identified substantial horizontal and vertical competition concerns arising from the transaction. In certain geographic areas, the combined market share of the parties reached approximately 85 to 95 percent. The TCA eventually concluded that the transaction would significantly impede effective competition under Article 7 of Law No. 4054.