Volvo Transaction Not In Need Of Repairs Despite High Market Shares

• Published date: 25 October 2022
• Subject Matter: orporate/Commercial Law, Antitrust/Competition Law, M&A/Private Equity, Antitrust, EU Competition
• Law Firm: Bird & Bird
• Author: Mr Alexander Br'chner and Morten Nissen

The Danish Competition Council ('DCC') has, following an in-depth investigation, approved Volvo Danmark A/S' ('Volvo Danmark') acquisition of Titan Lastvogne A/S ('Titan') in spite of post-transaction market shares exceeding 50%.

Volvo Danmark is the Danish importer of Volvo and Renault trucks and is active within both retail and wholesale of these trucks, as well as sale of Volvo and Renault branded spare parts to authorised resellers.

Prior to the acquisition four separate authorised resellers were active in Denmark. These resellers were respectively Volvo Danmark's own vertically integrated reseller and three independent resellers, including Titan.

Only Volvo Danmark's own vertically integrated reseller and Titan were active in the Eastern region of Denmark, including the island Zealand.

With its decision, the DCC approved the acquisition without remedies, even though this transaction will, in certain relevant markets including the market for reparation and maintenance of Volvo- and Renault trucks, strengthen Volvo Danmark's market share from levels already exceeding 50%.

Of special relevance for the assessment by the DCC was that the relevant counterfactual scenario for this transaction was not an assessment of the status quo absent the transaction. Instead, the...