BRUSSELS, March 28 EU antitrust regulators are
set to block German cement producers HeidelbergCement
and Schwenk's joint bid for Mexican peer Cemex's
Croatian unit barring a last minute change of mind, two people
familiar with the matter said on Tuesday.
The European Commission, which opened an investigation into
the deal in October last year, has not been convinced so far by
the companies' offer to lease a terminal on the Dalmatian coast
to a rival to address its concerns, the sources said.
The EU competition authority has said the deal may eliminate
a significant player in a concentrated regional market, boost
Cemex Croatia's market power in southern Croatia and lead to
price hikes in grey cement.
HeidelbergCement and Schwenk want to buy Cemex Croatia
through their Hungarian joint venture Duna Drava Cement (DDC) in
a deal worth about 250 million euros. DDC is the largest
importer in the area while Cemex Croatia is the biggest
(Reporting by Foo Yun Chee)